Cream Minerals raises $1.5m

Vancouver — Cream Minerals (CMA-V) has signed a deal with Canaccord Capital for a private placement of up to 2.3 million units priced at 65 apiece. Gross proceeds are estimated to be $1.5 million. A unit consists of one share of Cream Minerals and half a non-transferable warrant. Each whole warrant entitles the holder to buy one additional share for 75 within a year.

Once the placement is closed, Canaccord will receive an administration fee, Cream shares, a commission of 8% in cash and 20% in non-transferable agents’ warrants, which are exercisable for a year at a price of 75.

All shares and warrants are subject to a 4-month hold period from the closing date. A portion of the proceeds will be used to explore the Nuevo Milenio project in Mexico.

Cream has kicked off a 2-stage diamond drill program at its wholly owned Nuevo Milenio property, near Tepic, Mexico. An initial, 1,400-metre phase will be followed by a second 1,400-metre phase, 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 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 will test a 100-metre-wide quartz vein zone hosting disseminated gold-silver below an old exploration adit.

— At Once Bocas, two drill holes will be drilled under old Spanish workings to test a 100-metre-wide zone of quartz veining and stockwork.

— At Chacuaco West, one hole will test disseminated gold-silver mineralization in porous argillic lithic rhyolite tuffs.