Cabral Gold Inc (TSX-V:CBR) has announced the closing of the first tranche of its previously announced non-brokered private placement consisting of a total of 6,200,000 units at a price of $0.20 per unit for gross proceeds of $1.24 million.
The company said it intends to use the net proceeds from the placement for exploration and development activities, repayment of operating liabilities and general working capital purposes.
Each unit in the placement consists of one common share in the capital of the company and one common share purchase warrant. Each warrant is exercisable for two years following the first closing of the placement and will entitle the holder to purchase one common share at an exercise price of $0.30 in the first year following closing, or $0.40 per common share in the second year following closing.
READ: Cabral Gold announces high-grade gold assay results up to 5.3m at 27.6 g/t at Cuiú Cuiú; $2M financing
In connection with closing the first tranche of the placement, the company incurred finder's fees totaling $3,000. The company also issued an aggregate of 15,000 finder warrants. Each finder warrant entitles the holder to purchase one common share of the company at a purchase price of $0.20 for a period of 24 months following closing.
All securities issued in connection with the private placement are subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation and the policies of the TSX Venture Exchange, under which they may not be sold or transferred until March 26, 2023.
Stock option plan
Cabral Gold also announced that its shareholders have approved the company's amended 10% rolling stock option plan at the annual meeting of shareholders held on June 29, 2022.
The principal amendments to the stock option plan ensure compliance with the revised Policy 4.4 of the TSX Venture Exchange.
The maximum number of common shares which may be issued under the stock option plan is 10% of the company's issued and outstanding share capital, less the aggregate number of restricted share units granted as at the date of grant. The stock option plan has a "rolling" limit, as the number of common shares reserved for issuance pursuant to the grant of stock options will automatically increase. as the company's issued and outstanding share capital increases. The limit includes outstanding stock options previously granted
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 main gold deposits have so far been defined at the Cuiú Cuiú project which contains National Instrument 43-101 compliant Indicated resources of 21.6 million tons (Mt) at 0.87 grams per ton (g/t) gold (604,000 ounces) and Inferred resources of 19.8Mt at 0.84 g/t gold (534,500 ounces).
The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings in the Tapajós and produced an estimated 2 million ounces of placer gold historically.
Contact the author at jon.hopkins@proactiveinvestors.com