Cabral Gold aims to raise $3.0 million from amended financing
Cabral Gold Inc. [CBR-TSXV, CBGZF-OTC] said it has amended the pricing of a non-brokered private placement of units that was previously announced on October 30, 2024.
Under the amended pricing, the company is proposing to issue up to 12.5 million units priced at 24 cents each, generating up to $3.0 million. Each unit will consist of one common share and one half of one common share purchase warrant, each of which will entitle the holder to purchase one common share at an exercise price of 36 cents for two years following the closing date of the private placement.
Net proceeds are earmarked for general corporate purposes and to complete drilling and engineering following a recently completed prefeasibility study on a starter operation designed to target weathered gold-in-oxide material at the Cuiu Cuiu gold district in northern Brazil.
The company has a 100% interest in the Cuiu Cuiu gold district, which is located in the Tapajos Region, within the state of Para, northern Brazil.
Three main gold deposits have so far been defined at the Cuiu Cuiu project, which contain a NI 43-101-compliant indicated resource of 12.29 million tonnes of 1.14 g/t gold (450,200 ounces) in fresh basement material, and 11.11 million tonnes of grade 0.48 g/t gold (171,883 ounces) in oxide material. The project also contains an inferred resource of 13.63 million tonnes of 1.04 g/t gold (455,100 ounces) in fresh basement material and 12.22 million tonnes of 0.39 g/t gold (151,608 ounces) in oxide material.
The estimate is based on a NI 43-101 compliant technical report dated October, 2022.
The Tapajos Gold Province is the site of the largest gold rush in Brazil’s history. It led to the production of an estimated 30-50 million ounces of placer gold between 1978 and 1995, including two million ounces from Cuiu Cuiu.
Cuiu Cuiu is located next to G Mining Ventures Corp.’s [GMIN-TSXV, GMINF-OTCQB]2.0 million-ounce TZ project, which is currently under construction and was expected be Brazil’s third largest gold mine when it enters production in the second half of 2024. Cuiu Cuiu is a district containing 43 targets that are peripheral to the known deposits.
The company is hoping to generate near-term cash flow by exploiting the near-surface gold-in-oxide blankets, initially on a trial mining basis. It said this will eliminate the need for dilutive equity financings. The PFS is expected to be completed by the first quarter of 2024.
Cabral shares were unchanged at 27.5 cents on Wednesday and trade in a 52-week range of 38.5 cents and $0.13.