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Monday, 11 February 2013
Cadillac Ventures to raise $500,000 through private placement with Trafigura subsidiary
Cadillac Ventures (CVE:CDC) says it plans to raise up to a half a million through a private placement financing with existing shareholder Urion Mining International - a subsidiary of Trafigura, one of the world's leading international commodity traders.
Trafigura specializes in the supply and transport of crude oil, petroleum products, renewable energies, coal, refined metals, ferrous and non-ferrous ores and concentrates.
Each unit in the offering would be issued at 6 cents each, and will consist of one common share of Cadillac, and one share purchase warrant exerciseable for 30 months for a price of 10 cents each.
Cadillac said late Friday in a statement that it expects Urion, which already holds 24% of the company, to subscribe for 100 per cent of the offering.
The junior mineral explorer plans to use the new funds for general working capital, with the offering still subject to the approval of the TSX Venture Exchange.
The company also said that it will now not be closing a second and final tranche of its previously announced private placement of units at 9 cents each and flow through units at 10 cents each, from which it already raised around $1.2 million.
Late in November, Toronto-based Cadillac resumed exploration on its Burnt Hill property in New Brunswick, which covers more than 125 square kilometres and has NI 43-101 compliant tungsten, tin and molybdenum resources.
The last resource estimate on the property was calculated in 2009. The phase 1 ground exploration program will target the Tin Hill, Burnt Hill Brook Area, the Burnt Hill Mine Area, and the 2 1/2 Mile Brook Area, with two prospecting crews currently in the field.
Cadillac holds a 51 per cent interest in the Burnt Hill project, a historic tungsten/tin mine taken to test production by Brewster for Canadian International Paper during the early 1980s. The company is aiming to restart development at the project.
Just a few weeks ago, the company also agreed to sell its New Alger property in Cadillac Township, Quebec to Renforth Resources in a cash and share deal, in a bid to focus its efforts on Burnt Hill.
Under the terms of the agreement, Cadillac will get $20,000 in cash and 2.0 million common shares of Renforth at the time of signing, as well as another $210,000 in cash by June 15 of this year, and $250,000 in cash by November 15, 2013.
Cadillac also stands to benefit from its nickel and copper Thierry project in northwestern Ontario, which consists of the past producing Thierry Mine and hosts two NI 43-101 compliant resources at the Thierry Mine and the K1-1 deposit.