Cabral Gold Inc (CVE:CBR) (OTCMKTS:CBGZF) (FRA:C3J) said it has struck an agreement with a syndicate of investment dealers led by Cormark Securities Inc following which they have agreed to purchase, on a bought deal basis, an aggregate of 18,520,000 units from the company’s treasury at a price of $0.54 per unit for total gross proceeds of around $10 million.
The Vancouver-based junior resource company said the net proceeds of the offering shall be used for advancing its Cuiú Cuiú project in the Tapajós region, in the state of Pará in northern Brazil, general corporate purposes and working capital.
Each unit will consist of one share and one-half of one share purchase warrant of the company. Each warrant will entitle the holder to acquire one share from the company at a price of $0.80 per share for a period of 24 months after closing.
READ: Cabral Gold continuing to find gold targets at Cuiú Cuiú project in north-eastern Brazil
In addition, the company has granted the underwriters an option to buy an additional 15% of the units of the offering on the same terms exercisable at any time up to 30 days following the closing of the offering, for market stabilization purposes and to cover over-allotments, if any.
Closing of the offering is expected to happen on or about June 29, 2021, but is subject to standard corporate and regulatory approvals, said the company.
The units to be issued under the offering will be offered by way of a short form prospectus filed in each of the provinces of Canada, excluding Québec, and may be offered in the US on a private placement basis following an exemption from the registration requirements of the US Securities Act of 1933.
Cabral Gold is unlocking the high-grade gold potential of north-eastern Brazil. The company’s flagship Cuiú Cuiú project has Indicated resources of 0.2 million ounces (Moz) and Inferred resources of 0.8 Moz. It boasts a gold-in-soil anomaly that is 18km long and largely untested. Exploration work at Cuiú Cuiú has identified multiple high-grade gold vein target areas outside of the historic resource and gold-in-soil anomaly.
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