- Caldas Gold (CGC) has completed its previously announced bought deal private placement for gross proceeds of C$50 million
- Under the terms of the offering, the company issued a total of 22.22 million special warrants at a price of $2.25 each
- Each warrant will be exercisable at a price of $2.75 per share until July 29, 2025
- The proceeds will be used to fund the expansion of underground mining operations at the company’s Marmato Project in Colombia
- Caldas Gold (CGC) is currently down 9.83 per cent and is trading at $2.66 per share
Caldas Gold (CGC) has completed its previously announced bought deal private placement for gross proceeds of C$50 million.
Under the terms of the offering, the Toronto-based junior mining company issued a total of 22.2 million special warrants at a price of $2.25 each. This includes 2.22 million special warrants that were issued as part of an over-allotment option that was granted to the underwriters.
As consideration for their services, the underwriters, co-led by Scotiabank and Canaccord Genuity, received a cash commission equal to six per cent of the gross proceeds.
Each warrant will entitle the holder to acquire one common share in Caldas Gold at a price of $2.75, exercisable until July 29, 2025.
Serafino Iacono, Chairman and CEO of Caldas Gold, said he is very pleased to have closed the first phase of financing to build Colombia’s next major gold mine at the Marmato Project.
“We will now focus on the other two phases – the completion of the offering of units consisting of senior secured gold-linked notes and common share purchase warrants, and the streaming transaction with Wheaton Precious Metals through their wholly owned subsidiary, Wheaton Precious Metals International,” he added.
Caldas Gold says the proceeds will be used to expand the underground mining operations of its Marmato Project, which contains a measured and indicated mineral resource of 2 million ounces of gold.
A Preliminary Economic Assessment completed in 2019 outlined a path for the expansion of mining operations at the Marmato Project. This was comprised of two distinct operations: the existing Upper Zone operation and a new Deeps Zone operation, which sits directly below the Upper Zone vein system.
Caldas Gold (CGC) is currently down 9.83 per cent and is trading at $2.66 per share at 1:50pm EDT.