Precore Gold (CSE:PRCG) has tapped Argonaut Securities to provide cornerstone backing for a planned C$6 million ($6.11 million) non-brokered private placement. Argonaut has raised around $3.6 billion for the natural resources sector over the past 12 months.
Precore Gold intends to use the proceeds for exploration and general working capital.
The Canadian junior gold exploration company will issue up to 30 million units at C$0.20 each, with each unit comprising one common share and half a warrant. The warrants carry an exercise price of C$0.28 and expire two years from issuance.
The company can accelerate warrant expiry to 30 days if shares trade above C$0.70 on a 30-day volume-weighted average basis.
Argonaut Securities and its clients will participate as cornerstone investors for C$4 million of the placement. The company may pay Argonaut a 6% cash fee and 6% finder warrants on proceeds from subscribers sourced by the firm.
Argonaut Corporate Finance acts as financial adviser to Precore Gold under an engagement that includes C$5,000 monthly fees for 12 months and 1.5 million options exercisable at C$0.28 for two years.
Meanwhile, Precore Gold says its aim is to take advantage of properties that lie in fertile mining camps and in politically stable jurisdictions, and contain historical drilling results “that have not seen any follow-up work in years”.
The company holds two flagship properties: the Arikepay project in Arequipa, Peru and the Lac Big-Rush property in Chibougamau, Québec, Canada. The company focuses on building a portfolio of projects with gold discovery potential in established mining camps.
All securities issued will be subject to a four-month-plus-one-day statutory hold period under Canadian securities legislation. The placement requires conditional and final approval from the Canadian Securities Exchange.
Precore Gold notes it may pay additional finder fees on subscriptions of up to C$2 million sourced under a president’s list arrangement.
Write to France Pinzon at Mining.com.au
Images: Precore Gold
