VanGold Mining (TSXV: VGLD) this morning announced that it has closed a private placement for gross proceeds of $17.0 million. The financing reportedly saw a number of notable investors take part, including Endeavour Silver Corp (TSX: EDR), VBS Exchange, and Eric Sprott.
The financing saw a total of 56.5 million units of the company sold at a price of $0.30 per unit, with each unit containing one common share and one common share purchase warrant. Each warrant is valid for a period of three years from the date of issuance, and contains an exercise price of $0.45 per share.
Notably, the company identified that it Endeavour now has an 11.3% ownership stake in the firm, while VBS Exchange owns 5.5%, and Eric Sprott owns 3.5%, while directors now own 16.5% of the firm. Over 180 investors reportedly subscribed to the placement.
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Proceeds from the placement are to be used for the acquisition and refurbishment of the El Cubo mine and mill near Guanajuato, Mexico, exploration at El Cubo and El Pinguico, and for working capital and general corporate purposes.
VanGold Mining last traded at $0.485 on the TSX Venture.
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