Aurizon Mines (ARZ-T) has agreed to a private placement of 7.1 million share at $1.15 apiece with a group of underwriters for total proceeds of more than $8.1 million.
Aurizon plans to use the funds to exercise its first right of refusal to acquire TVX Gold‘s (TVX-T) interest in the Casa Berardi project in northwestern Quebec, plus a gold-indexed 2-4% net smelter royalty on the property.
The balance of the proceeds will be used for working capital.
Under the deal, the underwriters will receive a cash commission equal to 6% of the aggregate gross proceeds of the offering. The group will also receive purchase warrants for 6% of the number of shares purchased under the offering.
The offering is subject to, among other things, regulatory approval, and is slated to close by about June 25.
The West mine area at Casa Berardi contains reserves totalling 6.9 million tonnes grading 6.7 grams gold per tonne, for 1.5 million contained ounces. The project also hosts mineral resources of 4.5 million tonnes running 7.7 grams.
Be the first to comment on "Aurizon eyes $8 m for Casa Berardi"