Cream Minerals raises $1.5-million

Vancouver — Cream Minerals (CMA-V) inked a deal with Canaccord Capital for a private placement of up to 2.3 million units at a price of 65 per unit, for gross proceeds of up to $1.5-million.

Each unit consists of one common share of Cream Minerals and one-half of one non-transferable share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share for a period of one year from closing at a price of 75 per common share.

Once the private placement is closed, Canaccord will receive a commission of 8% in cash, of which Canaccord may elect to be paid up to one-half in units. Canaccord will receive 20% in non-transferable agent’s warrants that are exercisable for a period of one year from closing at an exercise price of 75 and will also receive a cash administration fee and a corporate finance fee in shares of Cream Minerals.

All shares, warrants with respect to the private placement and Canaccord’s compensation are subject to a four month hold period from the closing date. Proceeds from the financing will be used for the further exploration on the company’s Nuevo Milenio project in Mexico and for general working capital.

Cream Minerals has kicked off a two-stage diamond drill program at its wholly-owned Nuevo Milenio property near Tepic, Mexico. The initial 1,400-metre program commenced in late November and will be followed by a second 1,400-metre program, subject to drill results and financing. Drill results are pending.

Drilling is designed to test known epithermal zones of gold-silver mineralization at depth at the following targets:

• At Cerro Chacuaco, two holes, each 200 metres long, will test the Mina Chacuaco and Mina Nanche targets. This area represents a 400-metre-wide zone of disseminated gold-silver mineralization associated with silicification and quartz stockwork.
• At Dos Hornos, two holes, each 200 metres long, will test a 100-metre-wide quartz vein zone hosting disseminated gold-silver below an old exploration adit.
• At Once Bocas, two drill holes, each 200 metres long, will be drilled under old Spanish workings to test a 100-metre-wide zone of quartz veining and stockwork.
• At Chacuaco West , one hole, 200 metres long, will test disseminated gold-silver mineralization within porous argillic lithic rhyolite tuffs.

The second stage of the drill program will consist of follow-up drilling of zones of merit as indicated by stage one.