FULL DISCLOSURE: This is sponsored content for Rua Gold.
Rua Gold (CSE: RUA) is raising funds under a brokered financing with Cormark Securities for the further exploration of its Reefton project in New Zealand.
The financing will see Cormark act as a lead agent on an $8.0 million financing which will be conducted on a best efforts basis. Shares under the offering are being sold at a price of $0.18 per each, with no warrant offered under the financing.
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A 15% over-allotment option is also in play, which would bring in an additional $1.2 million if fully exercised.
The financing follows Rua on Monday announcing its intention to acquire Reefton Resources Pty, a subsidiary of the ASX-listed Siren Gold. The acquisition will nearly quadruple Rua’s landholdings within the Reefton Goldfield, making the company the dominant landholder within the region.
READ: Rua Gold To Become Largest Landholder In Prolific Reefton Goldfield Following $18.5 Million Purchase
Notably, the only tenements that Rua will not hold in the Reefton region upon close of the transaction consists of the Globe Progress Mine, which produced 610,000 ounces of gold from 2007 through to 2016 in an open pit operation, and the Blackwater project. The Blackwater project, which was recently sold by OceanaGold, will see Federation Mining produce 70,000 ounces of gold per year at an AISC of US$738 per ounce.
The Reefton Goldfield as a whole has produced over two million ounces of gold historically, at average grades ranging from 9 to 50 g/t.
Rua Gold last traded at $0.20 on the CSE.
FULL DISCLOSURE: Rua Gold is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Rua Gold on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
