Cabral Gold Inc (TSX-V:CBR), the Brazil-focused explorer, announced it has closed its previously announced private placement, bringing in total proceeds of C$3,011,507.40 gross.
Paradigm Capital Inc was the lead agent and sole bookrunner on behalf of a syndicate of agents including Cormark Securities Inc, Research Capital Corporation and Roth Canada Inc for the financing, which saw 10,038,358 units issued at C$0.30 each.
Cabral said it aims to use the funds for exploration and development and general working capital.
Each unit comprised one company share and one share purchase warrant, with each warrant entitling the holder to buy one share for C$0.50 for 24 months after closing.
The up to C$3 million offering was originally announced on June 8 this year and the lead agent exercised an over-allotment option for an additional gross proceeds of C$11,507.40.
READ: Cabral Gold says very encouraged by tests on gold-in-oxide material at MG target at Cuiú Cuiú project, Brazil
Officers and directors of Cabral took part and subscribed for 480,000 shares for gross proceeds of C$144,000.
The securities issued will be subject to a hold period of four months and one day from closing, which will expire on October 29 this year, in accordance with applicable securities laws.
Cabral Gold is a junior explorer with a primary focus on gold properties in Brazil. It 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 tonnes (Mt) at 0.90 g/t for 200,000 ounces and inferred resources of 19.5Mt at 1.24 g/t for 800,000 ounces.
Contact the author at giles@proactiveinvestors.com