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Monday, 4 February 2013
Sacre-Coeur gains as it closes gold bonds offering, raises $6.15 mln
Sacre-Coeur Minerals (CVE:SCM) says it has closed the second and final tranche of a gold participating bonds offering, raising another $2.36 million for over $6 million in new funds.
The company closed the first $3.78 million tranche of the placement late last month. Shares popped over 13% to 17 cents this morning.
In November, Sacre-Coeur approved an agreement for Canaccord Genuity to sell its gold participating bonds to raise up to approximately US$6 million.
Total proceeds from the two tranches of the offering amount of US$6.15 million, including overallotment.
The bonds, which mature on December 31, 2016, bear interest at a rate of 10 per cent per year, on the declining balance payable in cash, quarterly.
The bonds will be redeemed in 16 equal quarterly installments, the gold company said, by delivery of a total of 4,240 ZKB Gold ETF units - Class A (SIX: ZGLDUS) - the value of which is backed by physical gold only, and which is listed on the SIX Swiss Exchange.
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 amortization period.
The company plans to use the new funds for the development of its Million Mountain hard rock property in Guyana, specifically the advancement of the NI 43-101 resource to a development-ready decision state and the expansion and improvement of its current production.
Funds will also be used for continued exploration and resource development efforts in Guyana, as well as for general corporate purposes.
Sacre-Coeur Minerals in October 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 company is focused on exploration for gold, metals and diamonds in South America.
It currently holds a 100 per cent interest in around 850 sq. km of mineral properties in Guyana, including the Million Mountain property ,which hosts an NI 43-101 compliant hard-rock resource of 12.1 million tonnes grading 1.0 g/t gold measured, and 2.18 million tonnes grading 0.9 g/t gold indicated for a total 451,000 troy gold ounces combined.