Thursday 6 December 2012

Sacre-Coeur Minerals closes small, additional financing


Sacre-Coeur Minerals (CVE:SCM) says it has closed a small, additional non-brokered private placement financing, raising total proceeds of C$187,200. 
The company said it issued 1.25 million shares at a price of 15 Canadian cents each, adding that its intention is to minimize or avoid additional equity issues, and to rely, "to the extent possible" on production revenue to finance its programs going forward. 
Sacre-Coeur was not able, it said, to accommodate a number of investors within the limits, including overallotment, of its last private placement, which closed in October. 
As a result, and to assist with funding the legal and other fees in connection with its gold participating bond issue announced last month, it has chosen to proceed with this latest small placement. 
The new funds will be used for general corporate purposes, and for expenses related to the bond issue, which is expected to wrap up before Christmas. 
In November, Sacre-Coeur approved an agreement for Canaccord Genuity to sell its 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. 
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. 

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