Cabral Gold unveils $20 million bought deal financing
Cabral Gold Inc. [CBR-TSXV, CBGZF-OTC] has announced details of a $20 million bought deal financing consisting of 21.05 million common shares priced at $0.95 per share.
Proceeds are earmarked for expanded drilling on the company’s Cuiu Cuiu Gold District project in Brazil where recent drill results from the Jerimum Cima target include 9.5 metres of 0.87.4 g/t gold. “This bought deal financing will allow us to add more drill rigs to the current exploration program and drill the Jerimum Cima discovery as well as several other gold discoveries within the district,’’ said Cabral President and CEO Alan Carter. “The objective of the drill program will be to accelerate the growth of the indicated and inferred resources within the district, particularly hard rock material which is expected to be the basis of Phase 2 development at Cuiu Cuiu,’’ he said. “The Phase 1 gold-oxide project remains on schedule and on budget with commercial gold production expected in the fourth quarter of 2026. Cabral recently achieved a major permitting milestone with the granting of the full mining license for the Cuiu Cuiu Gold District project.
In connection with the bought deal financing, the company has agreed to grant the underwriters an over-allotment option to purchase up to an additional 3.15 million common shares (representing 15% of the number of shares to be sold in the offering) at the offering price. That option can be exercised in whole or in part, at any time prior to the date the is 30 days following closing of the offering. If that option is fully exercised, it will bring the total proceeds of the offering to $23 million.
On Wednesday, the shares eased 6.8% or $0.07 to 95 cents and trade in a 52-week range of $1.29 and 28 cents.
Cabral is a junior resource company with a focus on exploration and development of mineral properties primarily located in 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.