Candelaria Mining Corp said it has upsized its non-brokered private placement financing to raise gross proceeds of up to C$9.3 million, from the $7.8 million announced previously.
Gross proceeds from the offering will be used for permitting, exploration and development to advance the company’s flagship Caballo Blanco project in Mexico as well as for general corporate purposes.
The private placement consists of 20,666,666 company units, priced at C$0.45 per unit, with each unit comprising one common company share plus one-half of a common share purchase warrant that entitles the holder to acquire one common share of the company at a price $0.65 for a period of 36 months following the closing of the offering.
READ: Candelaria Mining announces C$7.8 million private placing to advance its flagship Caballo Blanco project
As well, Candelaria has announced the closing of the first tranche of the offering for gross proceeds of C$7,930,122, $6 million of which was purchased by Agnico Eagle Mines Limited.
It added that company directors Ramon Perez and Neil O’Brien subscribed for 888,888 units ($400,000) and 50,000 units ($22,500), respectively, as part of the first tranche.
Candelaria said the balance of the private placement is scheduled to close on or about October 31, 2021, and all securities issued in connection with the offering will be subject to a hold period of four months plus a day from the date of issuance.
Candelaria Mining is a gold-focused explorer, whose flagship asset is the 198 square kilometre Caballo Blanco project, which lies on the eastern coast of mining-friendly Mexico.
Caballo boasts an NI 43-101 Indicated resource of 521,000 ounces of gold and 2.17 million ounces of silver, while the Inferred category holds 95,000 ounces of gold and 590,000 ounces of silver. The project is seen as a simple open-pit heap leach operation and there is potential to increase resources via continued drilling and exploration.
Contact Sean at sean@proactiveinvestors.com