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Cabral Gold closes C$1.86M first tranche of private placement of miner’s shares

A subsidiary of Dundee acquired 6 million common shares for C$1.5 million, increasing the holding company’s stake in the miner to 18.6%
Gold bars in front of the Canadian flag
Cabral has identified a new zone of gold mineralization at the Cuiu Cuiu project in Brazil

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.

READ: Cabral Gold identifies zone of gold mineralization in northern Brazil

Dundee and its affiliates now own and control 18.6% of the issued and outstanding common shares on an undiluted basis, according to Cabral.

"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.

 

Contact Dennis Fitzgerald at [email protected]

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