Candelaria Mining Corp (CVE:CAND) (OTCPINK:CDELF) announced it was extending the closing of its previously disclosed private placement until June 14.
The junior resource company entered into an agreement with Echelon Wealth Partners Inc as sole agent and bookrunner, under which Echelon has agreed to sell, on a best effort” private placement basis, up to $25 million worth of units of the company at a price of $0.45 per unit.
Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to acquire one common share at $0.65 each for a period of 24 months following the closing of the offering.
READ: Candelaria Mining enters into agreement for “best efforts” private placement basis of up to $25 million worth of units
The company has also granted Echelon an option to increase the size of the offering by up to 15%, exercisable at the discretion of the Echelon at any time until 48 hours prior to the closing.
Net proceeds will be used to fund construction at the company’s Pinos Gold Mine, exploration activities at the Caballo Blanco District and the Pinos Gold Project, and general corporate purposes, the company said.
Pinos consists of concessions covering 17 kilometres of veins containing gold and silver. The resource is put at around 90,000 ounces at 4.7 grams per ton (g/t) gold equivalent, with the potential to expand that to up to between 300,000 and 500,000 gold equivalent ounces.
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