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Cadillac Ventures extends private placement financing, second tranche to close next month

Last updated: 09:00 30 Jan 2014 EST, First published: 10:00 30 Jan 2014 EST

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Cadillac Ventures (CVE:CDC) (OTC:CADIF) said Thursday it has extended its private placement financing of up to $1.5 million initially announced in November.

The company told investors that it closed the first tranche of the placement in December, issuing 200,000 units at 5 Canadian cents apiece and 2.09 million flow through units at 6 cents each for total proceeds of $135,440. 

It said it expects to close the second tranche by February 28 of this year. Each regular unit will be made up of one common share and one share purchase warrant, while each flow-through unit will consist of one common share to be issued on a flow through basis, and one half of a warrant.  Every warrant will allow the holder to acquire an additional share at a price of 10 Canadian cents each for a period of two years following the closing date. 

The new funds from the flow through shares will be used for exploration and development of the company's Canadian properties, it said, with the expenditures to qualify as "Canadian exploration expenses" as defined under Canada's Income Tax Act. The proceeds from the regular units will be used for general working capital. 

Cadillac said in November that existing shareholder Urion Mining International, a subsidiary of Trafigura Beheer, can choose to participate in the offering to maintain its 25% stake in the company.

The news of the financing extension comes after Cadillac provided investors with an update of its Burnt Hill project in New Brunswick yesterday, saying a drill program in the area of the historical mine successfully intersected tin, tungsten and silver mineralization in zones both outside and above the current identified resource. The company said the newest drill results are expected to lead to an increase in a future, updated resource estimate. 

The findings of the recent drilling are still awaiting assays and final interpretation, but Cadillac said field results so far are encouraging. "These positive drill results, as seen in the field, support our focus on the Burnt Hill project," said president and CEO Norman Brewster in a statement Wednesday, referring to the company's move to focus on developing the historical Burnt Hill mine in 2012, as it looked to push the exploration envelope around the mine site outward.

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. 

Early last year, the company announced the discovery of polymetallic veining consisting of silver and copper at Burnt Hill - the first such discovery at the property to the company's knowledge.  It also discovered the new Wolf Ridge occurrence at the site last November, which sits just 3 to 6 km to the west of the existing Burnt Hill mine deposit and encompasses several mineralized locales -- the Big Bad Wolf, Q60 Hill, the Stake Me veins and the McLean Brook area. 

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