Tuesday, 24 July 2012

Castle Peak Mining boosts private placement to up to $2.5 mln

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.
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.

The transaction is subject to receipt of all necessary approvals including the acceptance of the TSX Venture Exchange, and is expected to close in early August.

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 remaining units.

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.

The 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 NKDDH018.

This latter intercept includes an interval of 1.0 metre at a whopping 51.8 g/t gold grade.         

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