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—
Contact Dennis Fitzgerald at [email protected]