The Vancouver-based company has released a series of promising drill results over the last six months that have helped to identify the targets.
In February, Cabral announced the discovery of high-grade gold mineralization at surface in a new zone known as Alonso, where rock samples revealed gold values averaging around 91.7 grams per ton.
The latest target to be identified, Medusa, is located four kilometres east of Alonso. In April, Cabral reported two areas of quartz-sulphide boulders on surface returned values ranging from 1.1 to 82.1 grams per ton gold and 5.2 to 50.1 grams per ton gold.
Proceeds from the financing will go towards drilling at these and other targets on Cuiú Cuiú as well as general corporate purposes, Cabral told shareholders in a statement.
Under the term sheet, the company plans to issue up to 16 million shares priced at C$0.125 per share in a non-brokered private placement.
Securities issued in the placement are subject to a four-month hold period and subject to regulatory approval. The firm may pay a cash finder’s fee of up to 7% of gross proceeds. The financing is expected to close by June 19.
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