Close on the heels of highly favorable drill results at its Meadowbank gold project north of Baker Lake, Nunavut, Cumberland Resources (CBD-T) has arranged a $10.4-million financing with an option for a further $4.2 million.
The financing would see Canaccord Capital purchase 4 million units at $2.60 each, for $10.4 million gross. The units consist of a common share plus half a purchase warrant. A full warrant can be used to buy a common share at $3 within a year of the closing date.
An option on the deal allows Canaccord to buy an additional 1.5 million flow-through shares at $2.85 each; a full subscription to that option would mean a further cash injection of just under $4.3 million. Canaccord must take up the option at least 48 hours before the deal’s closing date, currently scheduled for June 12.
Canaccord gets a 6% commission and broker warrants to purchase further shares numbering up to 8% of the number of units and flow-through shares issued in the financing. Those warrants also expire a year after closing and can be exercised at $2.60.
Cumberland will use the money for further development on the Meadowbank property, including a 5,000 metre drilling program. Infill drilling is slated for the Vault deposit, where a recent 13-hole program intersected high-grade gold mineralization in step-out holes and down-dip from known mineralization. The rest of the program will follow up on targets identified in an earlier overburden drilling campaign.
Be the first to comment on "Cumberland raising $10-million-plus"