One placement, which raised $1 million, was completed with Aur Resources (TSE) which purchased flow-through shares at 95 cents each, along with an option to acquire one million additional flow-through shares at $1 each. Proceeds will be used to pay for Nova-Cogesco’s share (30% interest) of expenses at the Norlartic gold project northeast of Malartic, Que.
Nova-Cogesco says Aur will be responsible for all subsequent costs to be incurred by Nova-Cogesco at Norlartic, with Aur to be reimbursed from operating profits.
The second placement, which raised $2.5 million, was completed with the Fonds de Solidarite des Travailleurs du Quebec, which bought common, non-flow-through shares at 80 cents each in addition to warrants to purchase 3,125,000 additional common shares at $1 each. The Fonds gained the right to name two members to Nova-Cogesco’s board.
Established in 1984 by the Quebec Federation of Labor to help create jobs within the province, the Fonds works as a pension fund, allowing investors the opportunity to save for the future. The Fonds then re-invests the money in Quebec business ventures. Nova-Cogesco says it is the first mining investment for the Fonds.
Proceeds of the second placement will be used to cover Nova-Cogesco’s share (20% interest) of the preproduction work at the Silidor gold project near Rouyn-Noranda, Que.
The placements are subject to regulatory approval. In the case of the Fonds placement, shareholder approval must also be sought.
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