Cabral Gold Inc (CVE:CBR) said it has closed its previously announced bought deal prospectus offering and sold an aggregate of 21,298,000 units, which includes the exercise in full of the underwriters' over-allotment option, at a price of $0.54 per unit for aggregate gross proceeds of $11,500,920.
The Vancouver-based junior resource company said the net proceeds of the offering will be used for advancing its Cuiú Cuiú project in the Tapajós region, in the state of Pará in northern Brazil, for general corporate purposes and working capital.
Each unit in the offering is comprised of one share and one-half of one share purchase warrant. Each warrant will entitle the holder to acquire one share at a price of $0.80 per share until July 6, 2023.
READ: Cabral Gold strikes $10M bought deal public offering of units with syndicate led by Cormark Securities
The offering was led by Cormark Securities as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Stifel Nicolaus Canada Inc, Paradigm Capital, and Research Capital Corporation. The company paid the underwriters a cash commission of $562,852.85 and issued them an aggregate of 1,042,320 underwriters' warrants. Each underwriters' warrant is exercisable into one share at $0.54 per share until July 6, 2023.
The units issued under the offering were offered by way of a short form prospectus dated June 28, 2021, filed in the provinces of British Columbia, Alberta, and Ontario, and on a private placement basis in the US.
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 18 kilometer long and largely untested.
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