Vancouver – A financing for over $9 million will enable Emgold Mining (EMR-V) to continue working towards obtaining approval for its Idaho-Maryland gold mine near Grass Valley in Northern California, where the prospect of dewatering of the underground workings is raising local concerns.
The Vancouver-based junior raised $9.18 million through a non-brokered private placement first announced at the end of March.
A British Virgin Islands-based mutual fund, called Galaxy Fund, subscribed for 14,880,000 of the 18,360,000 units of the financing, or over 80%, which gives it about 23% of Emgold’s outstanding shares. Galaxy’s interest will increase to 36% of Emgold’s shares once the warrants tied to each of the units are exercised.
Emgold will seek shareholder approval for the private placement at its annual general meeting on June 8.
Proceeds are slated for further exploration and development of the company’s Idaho-Maryland underground mine. Plans also call for ongoing development and commercialization of the Ceramext(TM) process which will see the mine’s tailings turned into tiles.
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