Cadillac Ventures (CVE:CDC) says it has closed a $500,000 financing with existing shareholder Urion Mining International - a subsidiary of Trafigura, one of the world's leading international commodity traders - just hours after it announced a $1.2 million investment by Sino Canada Natural Resources Fund.
Under the financing with Urion announced early last month, the company sold 8.33 million units at a price of 6 cents each. Each unit is made up of one common share and one share purchase warrant, with each warrant good for one additional share at a price of 10 cents for 30 months.
Urion Mining held around 24% of Cadillac prior to the closing of the offering. The new funds raised will be used for general working capital.
Meanwhile, the company also announced early Saturday a $1.2 million subscription agreement with Sino-Canada Natural Resources Fund I. Under the terms, Sino-Canada has subscribed for 20.0 million units of Cadillac at a price of 6 cents each.
The units will be issued under the same terms as those under the Urion financing. After close, Sino-Canada will hold roughly 12.1% of Cadillac, or around 21.7% assuming full exercise of warrants.
The Sino-Canada deal, which will give the investor the right to nominate one director to Cadillac's board, still needs the approval of the TSX Venture Exchange.
Cadillac said these proceeds will be used for exploration expenses on its Canadian properties, as well as for general working capital.
The news today comes at a time when miners are gathering at the industry's most significant event of the year, the Prospectors and Developers Association of Canada convention in Toronto, where the dominant theme will be the search for cash as junior companies try to stay afloat in a depressed market - an area where Cadillac seems to already have a leg up.
Last week, the Toronto-based Cadillac company said it started an internal review of its Kirkland Lake Gold property after some encouraging data.
The asset, which Cadillac acquired as part of its purchase of Richview Resources in January 2010, is located west of the town of Kirkland Lake, Ontario, within four kilometres of the producing Macassa mine.
When the company acquired the property in 2010, Richview had carried out limited exploration on the asset. With the internal review, Cadillac is also planning initial fieldwork to be carried out in the spring.
Cadillac also last November 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 company holds a 51 per cent interest in the Burnt Hill project, a historic tungsten/tin mine taken to test production by CEO Brewster for Canadian International Paper during the early 1980s. The company is aiming to restart development at the project.
It 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.
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