Greenheart Gold raising up to $50 million for Guiana Shield projects
Greenheart Gold Inc. [GHRT-TSXV, GHRTF-OTCQX] said it intends to proceed with a non-brokered private placement financing that is expected to generate gross proceeds of up to $50 million.
Greenheart is an exploration company led by former executives and members of the exploration group at Reunion Gold, a team that was most recently noted for discovery and delineation of the multi-million-ounce Oko West deposit in Guyana. The company has assembled a portfolio of early-stage exploration projects in Guyana and Suriname that are prospective for orogenic gold deposits.
The company said the proceeds of the private placement of up to 50 million shares priced at $1 per share are earmarked for exploration work on its projects in Suriname and Guyana, potential new acquisitions in the Guiana Shield, and exploration work in the region.
On Friday, Greenheart Gold shares rose 4.04% or $0.04 to $1.03. The shares trade in a 52-week range of $1.63 and 56 cents.
The company said it is pleased to announce that La Mancha Investments Sarl, which holds approximately 4.62% of the outstanding common shares of the company, intends to participate in the offering and increase its ownership to approximately 19.9%. In addition, G Mining Ventures Corp. [GMIN-TSXV, GMINF-OTCQB], via its G Mining Guyana Corp unit, which holds approximately 10.5% of the company’s outstanding shares, has signalled its intention to exercise its right to participate in the offering and acquire the number of shares that are required to maintain its ownership position.
The company said the allocation of the number of shares each will acquire will depend on the participation of other investors in the offering.
Greenheart said it expects to enter into an investor rights agreement with La Mancha similar in form and substance to the investor rights agreement currently in place with G Mining Guyana. It will provide La Mancha with the right to nominate one board member and to maintain its ownership interest in the event of future financings where securities are issued. La Mancha will also commit to standstill restrictions and to restrictions on the transfer or sale of common shares held by La Mancha.
G Mining Ventures recently said it has struck definitive deal that will see the company acquiring all the outstanding shares of G2 Goldfields Inc. [GTWO-TSX, GUYGF-OTCQX] pursuant to a court-approved plan of arrangement worth approximately $3.0 billion
The transaction aims to deliver district-scale consolidation by combining G Mining’s Oko West gold project with G2’s Oko-Ghanie Project into a single Tier 1 entity, to be known as the Oko Project. It also combines anticipated life of mine average gold production of approximately 350,000 ounces from G Mining’s Oko West Project and 228,000 ounces from G2’s Oko Ghanie Project into a single operation, producing 500,000 ounces on a life of mine average basis.