Extorre Gold Mines (AMEX:XG) (TSE:XG) announced Wednesday a C$25 million bought deal private placement financing.
The company has agreed to sell 3.53 million common shares at a price of C$7.10 each, for total proceeds of $25.06 million.
The new funds will be used for exploration and development of the
company's mineral projects in Argentina, and for general working capital
In connection with this offering, the underwriter will receive a cash
commission of five percent of the gross proceeds raised, Extorre said.
The deal is expected to close around March 15, subject to regulatory approvals.
Earlier this week, Extorre said it intersected more high-grade drill
results at its Cerro Moro project in the Santa Cruz province of
Argentina, particularly on the Zoe target.
Significant results from the 36 in-fill and step-out drill holes that
the company completed at Zoe include MD1434A, which intersected 2.5
metres grading 41.4 grams per tonne (g/t) gold and 2,234 g/t silver,
including 108.1g/t gold and 5,812 g/t silver over 0.35 metres.
Extorre has scheduled the release of its updated preliminary economic
assessment (PEA) for March 31. The PEA will include mineral resource
estimates for the Escondida-Zoe, Loma Escondida, Gabriela,
Nini-Esperanza, Carla and Deborah mineralized zones.
The latest PEA from August, which was based on a resource estimate
from April that did not include results from the Zoe discovery,
indicated a proposed mine production plan of 1,000 tonnes per day for a
total of 206,300 ounces of gold equivalent per year for the first three
years of an 8.25 year life, at a cash cost of US$236 per ounce of gold
Four rigs remain active at Cerro Moro, devoted to both new resource
and mine development-related drilling at the property. At Zoe, infill
drilling is continuing to convert the inferred resources to the
Meanwhile, discovery-stage drilling at the Zoe East, Tres Lomas, Mosquito, Alejandra, and Carlita targets is progressing.