Castle Peak Mining (CVE:CAP) said Wednesday it plans to raise up to $2 million through a non-brokered private placement financing.
The gold explorer intends to sell up to 10.13 million units priced at
20 cents each. The financing is slated to close by July 13.
Each unit consists of one share and one purchase warrant. The warrant
gives holders a right to buy one extra share for a price of 40 cents,
for a period of 18 months from the date of closing.
The company said proceeds will go toward funding on-going exploration
at Castle Peak’s Akorade project in Ghana, West Africa, and also for
There are five producing gold projects that account for more than 50
million ounces in gold reserves and resources, within 50 kilometres of
Castle Peak's Akorade project.
The Ashanti belt is known as one of the most prolific gold belts in
the world with over 150 million proven ounces uncovered, the company
Castle Peak said Grizal Enterprises, or a "control person" of the
company, has expressed an interest to subscribe to up to 3.375 million
units of the offering.
If Grizal buys all these units, it would hold 15.375 million shares, representing 21.5 per cent of Castle Peak.
Certain directors of the company also intend to subscribe for units, the company said.
The company also said it may pay a finder’s fee of seven per cent,
adding that the offering is subject to TSX Venture Exchange approval.
The Canadian exploration and development company is focused on
advancing greenfield and early stage gold projects. It holds a strategic
land package in the Ashanti belt adjacent to several producing gold
mines in Ghana, West Africa.