Cabral Gold Inc (CVELCBR) (OTCMKTS:CBGZF) is planning to raise up to C$3 million to advance exploration at its flagship Cuiú Cuiú gold project in Brazil, the company announced Wednesday.
As part of the private placement, Cabral will offer up to 20 million units at a price of $0.15 per share for gross proceeds of $3 million. Each unit consists of one share and one warrant that entitles the holder to buy one share at $0.20 per share for a 12-month period following closing of the placement.
Vancouver-based Cabral said in a statement that officers and directors of the junior company intend to subscribe for at least 5% of the private placement.
Part of the proceeds will also be used towards working capital purposes.
Cabral’s Cuiú Cuiú has a resource 5.9 million tons grading 0.9 g/t gold of Indicated and 19.5 million tons grading 1.2 g/t gold Inferred, or 0.2 million ounces and 0.8 million ounces of gold, respectively.
The junior gold explorer released a new set of drill results from the Cuiú Cuiú project in Brazil that hit high-grade gold at the previously untested Morro la Lua target.
Shares of Cabral were fell 3.1% in Canada at C$0.16 and at US$0.10 on OTC markets.
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