- Cassiar Gold (GLDC) has raised C$6.65 million in a private placement to fund drilling work at its wholly owned Cassiar Gold Project
- The company issued 3.2 million units at a price of 60 cents each, 3.7 million flow-through units at a price of 70 cents each, and 2.5 million charitable flow-through units at a price of 82 cents each
- With the financing complete, the company said it is fully financed to carry out its upcoming 2021 exploration program
- The financing follows the recent completion of a name change from Margaux Resources, and the company has now begun trading on the OTCQB Venture Market in the United States
- Cassiar Gold (GLDC) is currently down 6.45 per cent to 58 cents per share
Cassiar Gold (GLDC) has raised C$6.65 million in a private placement to fund drilling work at its wholly owned Cassiar Gold Project.
Under the terms of the placement, which was announced on September 30 and upsized on October 8, the Calgary-based company issued a total of 3.25 million units at a price of $0.60 each, 3.77 million flow-through units at a price of $0.70 each, and 2.5 million charitable flow-through units at a price of $0.82 each.
All of these units are comprised of one common share in Cassiar Gold and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share in the company at a price of $0.90, exercisable over a period of 24 months from the date of issuance.
In connection with the offering, Cassiar Gold paid finders’ fees to certain parties, including cash payments totalling $540,428 and the issuance of 803,580 share purchase warrants.
The proceeds raised will be used to fund a next phase of drilling at the wholly owned Cassiar Gold Project, which covers roughly 56,000 hectares and hosts a number of past-producing gold mines.
Marco Roque, CEO of Cassiar Gold, said the strong support for the placement was a significant vote of confidence for the company.
“We are very pleased with the overwhelming demand from investors in this financing and in particularly from institutional investors who accounted for the large majority of orders as well as final allocations.
“This provides further validation to the attractiveness of our flagship project and allows us to be fully financed for our ambitious 2021 exploration program,” he added.
The financing follows a recent name change from Margaux Resources, which took effect in late September this year. This included a change of the company’s ticker, and the commencement of trading on the US OTCQB Venture Market.
Cassiar Gold (GLDC) is currently down 6.45 per cent to $0.58 per share at 11:19am EST.
