Meadow Bay Gold (TSE:MAY) (OTCQX:MAYGF) said Tuesday it has closed the first tranche of a non-brokered private placement, for gross proceeds of $900,000.
The offering consists of 1.5 million units priced at 60 US cents each.
Each unit consists of one common share and one share purchase warrant
to purchase an additional common share for 75 US cents for a period of
two years from closing.
The company's CEO and director, Robert Dinning, has subscribed for 85,000 units of the financing.
The new funds will be used to conduct exploration work at Meadow Bay Gold's Atlanta Gold mine project in Nevada and to complete the mineral resource estimate and technical report currently being prepared.
finder's fee of six per cent cash and six per cent finder's warrants
will be paid to Canaccord Genuity Corp. on a portion of the gross
proceeds, the company said.
In June, Meadow Bay told investors that is discovered porphyry gold mineralisation near the historic Atlanta open pit mine.
This came after it completed a combined IP/resistivity survey across the project in Lincoln county, Nevada.
company said at the time this is a distinctly different target than the
gold-silver mineralization found within the Atlanta Fault.
Bay also said the survey findings suggest the porphyry is larger than
previously interpreted and extends further to the north.