Cabral Gold Inc (CVE:CBR) (OTCPINK:CBGZF) shares nudged higher as it revealed it had closed the first tranche of a previously announced over-subscribed placing, raising over C$3 million gross to advance its flagship Cuiú Cuiú project in Brazil.
The group issued over 25.9 million shares at C$0.125 a throw for gross proceeds of $3,249,675.
The current closing included a brokered component comprising 2.4 million shares, bringing in C$300,000 gross.
"We are very pleased with the overwhelming interest we received from investors in this oversubscribed offering," said Alan Carter, CEO of Cabral Gold, in a statement.
"This financing will allow Cabral Gold to initiate new drill programs aimed at testing recently identified high-grade drill targets at Alonso, Medusa and Cilmar, as well as allowing us to further test recently identified high-grade zones within the MG and Central deposits at Cuiú Cuiú.
"We look forward to a steady flow of drill results in the coming months as we continue to advance this expanding district."
Cabral noted officers and directors had taken part in the financing, subscribing for 1.7 million shares for gross proceeds of C$212,500.
The cash will also be used for general corporate and working capital purposes, said the company.
Cabral shares added nearly 8% to C$14 in Toronto.
Contact the author at [email protected]