As part of the non-brokered private placement, Cabral will offer up to 20 million units at a price of $0.15 per share for gross proceeds of $3 million. Each unit consists of one share and one warrant that entitles the holder to buy one share at $0.20 per share for a 12-month period following closing of the placement.
Vancouver-based Cabral said in a statement that officers and directors of the junior company intend to subscribe for at least 10% of the private placement.
The company noted that part of the proceeds will also be used towards working capital purposes.
In May, the company released a new set of drill results from the Cuiú Cuiú project in Brazil that hit high-grade gold at the previously untested Morro la Lua target.
Cabral’s Cuiú Cuiú has a resource 5.9 million tons grading 0.9 g/t gold of Indicated and 19.5 million tons grading 1.2 g/t gold Inferred, or 0.2 million ounces and 0.8 million ounces of gold, respectively.
Shares of Cabral were at C$0.17 in Toronto and at US$0.11 on OTC markets on Tuesday.
Contact Katie Lewis at [email protected]