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Wednesday, 7 November 2012
Sacre-Coeur Minerals to raise up to $6 mln through gold bonds offering
Vancouver-based Sacre-Coeur Minerals (CVE:SCM) says its board has approved an agreement for Canaccord Genuity to sell the company's gold participating bonds to raise up to US$6 million.
It is anticipated that the amount of gold committed over the term of the bonds will represent less than 20 per cent of its forecast gold production for the term.
The company plans to use the new funds for the development of its properties in Guyana and for general working capital purposes.
The offering still needs final documentation, as well as regulatory approvals, to close.
In October, Sacre-Coeur Minerals said it produced and sold a total of almost 597 troy ounces for the September quarter from its alluvial operations in Guyana, for an average of 49.7 troy ounces per week, citing continued improvement in production and cost performance.
Alluvial gold can be found in soil and sediment deposits. These deposits are usually found around rivers, streams, or any other sort of running water.
The South America-focused company said the average price realized in the 12-week period ending September 30 was US $1,653.74 per ounce, yielding US $986,373 in gross sales receipts.
Operating availability rose to 66.8 per cent, despite time lost due to mechanical interruptions and moves and setups, Sacre-Coeur said.
Sacre-Coeur is involved in the acquisition, exploration and production of properties for gold, metals and diamonds in South America.
Initially, the company is focused on exploring and producing gold from its properties in Guyana. It currently holds a 100 per cent interest in roughly 850 square kilometres in Guyana, including its Million Mountain property.
The project hosts an NI 43-101 compliant hard-rock resource of 451,000 troy ounces of gold combined in the measured and indicated categories.