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Friday, 31 May 2013
Cadillac Ventures raises $1.2 mln for Burnt Hill
Cadillac Ventures (CVE:CDC) says it has put to bed a $1.2 million private placement financing despite a challenging time for junior exploration companies.
The company closed the private placement of 20 million units at a price of 6 cents each, with each unit made up of one common share and one share purchase warrant. Each warrant is exerciseable for 30 months following closing, for an additional share at a price of 10 cents apiece.
Sino-Canada Natural Resources Fund I subscribed for 100 per cent of the offering, now owning roughly 12.1 per cent of Cadillac, or 21.7 per cent assuming full exercise of its warrants.
The shareholder also now has the right to appoint one director to Cadillac's board, for so long as Sino-Canada owns more than 7 per cent of the stock. It has nominated Bing Pan, with Pan to be appointed as soon as possible.
Cadillac says it plans to use the new funds for expenditures on its Canadian exploration properties and for working capital needs.
Earlier this month, the company announced the discovery of polymetallic veining consisting of silver and copper at its Burnt Hill property in New Brunswick - the first such discovery at the property to the company's knowledge.
The Burnt Hill property stretches 11,000 hectares and although historical prospecting activity was carried out during the 1970s, work largely focused on the Burnt Hill mine site, and did not include exploration for silver.
The historic tungsten/tin mine was actually taken to test production by Cadillac's CEO Norman Brewster for Canadian International Paper during the early 1980s. The company is working to update the resource model at the deposit, with results from 16 recent drill holes not previously included in the existing NI 43-101 report.