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Wednesday, 31 October 2012
Clifton Star Resources to raise up to $3 mln in private placement
Quebec-based Clifton Star Resources (CVE:CFO) says it has signed an engagement letter for a "best effort private placement" of flow through shares, raising up to $3 million.
The agreement, with Industrial Alliance Securities, consists of the issuance of up to 2.4 million flow through shares at a price of $1.25 each.
The gold explorer also granted a 30-day over-allotment option to the agent to sell additional shares equal to up to 15 per cent of the total offering.
If the option is exercised in full, the company will raise a total of $3.45 million in proceeds.
Clifton said it plans to use the new funds to incur exploration expenses on its Duparquet project in Quebec, as well as to upgrade and expand its resources.
The financing is expected to close around November 12, subject to regulatory approvals, among other things.
Earlier this month, Clifton Star unveiled drill results from another 19 holes at its Duparquet project, showing potential for expansion of the mineralized zones.
The drilling focused on the exploration potential to the east of the Donchester pit shell, toward Central Duparquet. Significant gold grades extended for more than 400 metres to the east of the current Donchester pit shell, Clifton added.
Notable results from exploration outside the pit shell included 26 metres grading 1.29 grams per tonne (g/t) gold in hole CD12-07, and 4.0 metres of 5.86 g/t gold in hole D12-13.
Clifton Star continues to expand the resources at the Duparquet project with two drill rigs. So far this year, it has drilled 68 holes, with 17 completed since the end of August.
The first integrated resource report on the project, released in May, included the Beattie, Donchester, Dumico and Central Duparquet properties, as well as the Beattie tailings.
The report noted 1,284 ounces of gold in the measured category, 1.71 million ounces of gold in the indicated category and 1.67 million ounces of gold in the inferred category.