Cabral Gold Inc (CVE:CBR) (OTCMKTS:CBGZF) said Thursday that it has closed the first tranche of its private placement financing for gross proceeds of C$1.86 million through the issuance of 7.45 million common shares.
The Vancouver mining company said in a press release that Dundee Resources Ltd, a subsidiary of Toronto-based holding company Dundee Corp (TSE:DC.A), participated in the financing and acquired 6 million common shares for C$1.5 million.
The company said Dundee and its affiliates, on closing of the offering, owned and controlled 19.03% of the issued and outstanding common shares of the company on an undiluted basis.
"We are extremely pleased to welcome Dundee as a strategic investor," Cabral CEO Alan Carter said in a statement.
The company added that it paid cash finder's fees of C$91,500 and issued 366,000 share purchase warrants to a third party in connection with the private placement. Each finder's warrant entitles the holder to purchase one common share of the company at a purchase price of C$0.25 through November 28, 2020.
Officers and directors of Cabral subscribed for a total of 1.3 million common shares for gross proceeds of C$327,500.
Shares of Cabral were unchanged at C$0.22 in Thursday’s Canadian trading. Dundee advanced C$0.01 to C$1.29.
Earlier in November, Cabral said that it has identified a new zone of gold mineralization at the Cuiu Cuiu project in Brazil.
—This story was updated after Cabral clarified information on percentage of shares owned and controlled by Dundee—
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