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- Big River Gold (BRV) has completed a $20.4 million placement to advance construction and development at its Borborema Gold Project in Brazil
- The placement was offered to institutional and sophisticated investors at 5 cents per share
- Proceeds will be used to advance development and construction at the 100-per cent owned 2.43 million ounce Borborema Gold Project, including a design option review to for a stage two expansion if viable
- 408 million shares will be issued through two tranches under the placement, with settlement for the first tranche expected on December 11
- Shares for the second tranche will be issued subject to shareholder approval following a general meeting in early 2021
- At market close, shares are trading at 5.9 cents each
Big River Gold (BRV) has completed a $20.4 million placement to advance construction and development at its Borborema Gold Project in Brazil.
The placement was offered to institutional and sophisticated investors at 5 cents per share.
Proceeds will be used to advance development and construction at the 100-per cent owned 2.43 million ounce Borborema Gold Project, including a design option review to for a stage two expansion if viable.
More specifically, funds will be used to complete early infrastructure works and plant designs, appoint project teams, and undertake drilling programs.
The 408 million shares will be issued through two tranches under the placement with settlement for the first tranche expected on December 11.
Big River Gold directors also intend to participate in the placement for a total of 3.2 million shares, however, this is subject to shareholder approval.
Canadian-based resources investor Dundee Goodman Merchant Partner invested $8 million in the capital raise. Upon completion of the second tranche of the placement, the firm will hold approximately 9.2 per cent of the company’s issued ordinary shares.
Shares for the second tranche will be issued subject to shareholder approval following a general meeting in early 2021.
The company will also issue the joint lead managers 24.48 million unquoted options exercisable at six cents each expiring three years after the date of issue.
Big River Gold executive Chairman Andrew Richards welcomed the new Australian and offshore investors.
“Dundee, a cornerstone investor to the placement, is a highly experienced investor in the resources sector with extensive experience in both gold and nickel operations,” he said.
“Following the completion of a thorough due-diligence process, Dundee share our view of the significant potential of the Borborema Gold Project,” he added.
Big River Gold shares are trading at 5.9 cents each at market close.
