- Black Dragon Gold (BDG) raises $1.85 million from the first tranche of its $2.4 million placement
- The company is allotting just over 33 million shares in the forms of CDIs at 5.6 cents per CDI and the second tranche is subject to shareholder approval
- A share purchase plan aims to raise up to $2.29 million with eligible shareholders able to subscribe for up to $30,000 at the same CDI price as the placement
- The company says the proceeds will primarily go towards its Salave gold project in Spain
- Shares are trading steady at 5.7 cents
Black Dragon Gold (BDG) has raised $1.85 million under the first tranche of its recently announced $2.4 million placement.
The company has reportedly allotted just over 33 million ordinary shares in the form of CDIs at an issue price of 5.6 cents per CDI.
When the placement was announced last week, Black Dragon indicated it would also launch a share purchase plan (SPP).
The SPP aims to raise up to $2.29 million with eligible shareholders able to subscribe for up to $30,000 shares at the same issue price as the placement.
The company claims tranche two of the placement is subject to shareholder approval and, if successful, directors will be allowed to subscribe for up to $580,000.
Also subject to shareholder approval, all placement investors will receive one attaching option for every two CDIs subscribed in the placement. Each option will have an exercise price of 10 cents each, exercisable two years after the issue date.
Black Dragon said the proceeds raised under the placement and SPP will primarily go towards its Salave gold project in Spain.
The company holds a 100 per cent stake in the project which has a measured, indicated and inferred resource of 11.33 million tonnes at 4.27 grams of gold per tonne, containing 1.55 million ounces of gold.
Shares were trading steady at 5.7 cents at 11:47 am AEDT.