- Amarillo Gold (AGC) has raised C$57.2 million in a private placement to fund ongoing work at its projects in Brazil
- The company issued a total of 190 million common shares at a price of $0.30 each
- Canadian investor Eric Sprott participated in the offering, acquiring a total of 43.3 million common shares
- The proceeds will be used to fund the construction of the company’s Posse Gold Mine and advance work at its Lavras do Sol exploration project
- Amarillo Gold (AGC) is currently up 11.32 per cent and is trading at 30 cents per share
Amarillo Gold (AGC) has raised C$57.2 million in a private placement to fund ongoing work at its projects in Brazil.
Under the terms of the placement, which was originally announced on July 22, 2020, the company issued a total of 190,666,000 common shares at a price of $0.30 each.
Mackie Research Capital acted as the sole underwriter and bookrunner for the offering, under which it acquired 118,967,000 common shares for a total of $35.7 million.
Notably, the offering also included a participation from Canadian investor Eric Sprott, who purchased a total of 43,300,000 common shares.
Prior to the placement, Eric beneficially owned 25,000,000 common shares and 25,000,000 purchase warrants.
This has now been increased to a total of 68,300,000 common shares and 25,000,000 purchase warrants, representing approximately 17.9 per cent of Amarillo’s securities on a non-diluted basis and 22.9 per cent on a partially diluted basis.
The proceeds raised under the placement will be used to fund the construction of the company’s Posse Gold Mine, as well as for ongoing exploration work at the Lavras do Sol project, both of which are located in Brazil.
Mike Mutchler, CEO of Amarillo Gold, said the company plans to begin detailed engineering for the Posse Gold Mine, along with exploration plans for both properties.
“This successful financing reflects the continuing support of our shareholders, and their confidence in the results of the positive feasibility study on the Posse Gold Project,” he added.
Located approximately six kilometres north of the town of Mara Rosa in the State of Goiás, the project covers 2,552 hectares across three mining concessions and was acquired by Amarillo from Metallica Brasil in October 2003.
Amarillo Gold (AGC) is currently up 11.32 per cent and is trading at 30 cents per share at 2:25pm EDT.
