Vancouver – Cumberland Resources (CLG-T, CLG-X) has arranged an $86.9-million bought-deal financing earmarked for development of its Meadowbank gold deposit near Baker Lake in eastern Nunavut.
The deal will see an underwriting syndicate led by BMO Capital Markets and Raymond James purchase 16.1 million shares at $5.40 apiece with an over-allotment, or “Greenshoe”, option to purchase an additional 2,415,000 shares at the same price.
The company also recently arranged the sale of its interest in the Meliadine gold projects to Resource Capital Funds for $23 million.
Meadowbank is forecast to annually produce about 330,000 ozs of gold over an 8-year mine life, anticipated to commence in early-2009. The deposit hosts proven and probable reserves of 21.3 million tonnes grading 4.2 grams gold per tonne, or about 2.89 million contained ozs. of gold.
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