Castle Peak Mining (CVE:CAP) said Tuesday that it has amended the terms of its previously announced private placement offering, raising the total amount to up to $2.5 million.
The offering will now consist of up to 14.7 million units at a price of 17 cents each.
unit will consist of one common share of the company and one share
purchase warrant, where each warrant will allow the subscriber to
purchase one additional share at a price of 25 cents for a period of two
years from the closing date.
Proceeds from the financing will
be used to fund the ongoing exploration program at Castle Peak's Akorade
project in Ghana, as well as, working capital, the company said.
transaction is subject to receipt of all necessary approvals including
the acceptance of the TSX Venture Exchange, and is expected to close in
The investors in the offering include Grizal
Enterprises, with up to 5.88 million units, director Allan Green, with
up to 5.88 million units, and a third unnamed investors for the
If all units are subscribed for, Grizal will
hold around 23.5 per cent of Castle Peak, while Green will hold close to
10 per cent.
Earlier this month, Castle Peak reported what it
called "encouraging" initial follow-up diamond drill results from its
high grade Apankrah target at the Akorade project in Ghana, West Africa.
follow-up holes, designed to confirm the high grade shoot geometry at
the site, returned results including 10 metres of 6.7 grams per tonne
(g/t) gold from hole NKDDH017 and 9.8 metres of 6.8 g/t gold from hole
This latter intercept includes an interval of 1.0 metre at a whopping 51.8 g/t gold grade.