Cabral Gold Inc (TSX-V:CBR) has entered into an agreement with Paradigm Capital Inc to act as the lead agent and sole book-runner in connection with a proposed best efforts private placement, the company announced.
The private placement will consist of up to 10 million units at a price of $0.30 per unit for total proceeds of up to $3 million.
Units are comprised of one common share and one common share purchase warrant. Warrants are exercisable at a price of $0.50 per share for a period of two years after the offering closes.
READ: Cabral Gold enters into agreement for "best efforts" marketed offering for total gross proceeds of up to approximately $5M
Additionally, Cabral offered an update to its prospectus offering previously announced on May 25.
The company has granted the agent the option to purchase additional units, up to 15% of the total units sold pursuant to the offering. The terms and price remain the same.
The company intends to use the net proceeds for exploration and development activities, and general working capital purposes.
Cabral Gold is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil.
The company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9 million ton (Mt) at 0.90 grams per ton (g/t) - 200,000 ounces - and Inferred resources of 19.5Mt at 1.24 g/t - 800,000 ounces.
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