Algold Resources completes $7.5M financing

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By CPE News

Montreal (pcJ News Briefs) – Algold Resources Ltd. (TSX-V: ALG) has completed its previously announced bought deal of 35,000,000 units at $0.20 per unit and concurrent non-brokered private placement of 2,500,000 units at the same price for aggregate gross proceeds of $7.5 million.

The bought deal offering was made through a syndicate of underwriters led by Beacon Securities Limited and including Paradigm Capital Inc.

Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at a price of $0.30 for a period of 24 months from the closing of the offering, subject to accelerated expiry.

Algold Resources paid to the underwriters an aggregate cash commission of $312,880 and issued aggregate of 1,564,400 compensation options, each exercisable into one common share at the issue price for a period of 24 months from the closing date.

Algold Resources intends to use net proceeds to carry out exploration drilling on its Tijirit property and for working capital and general corporate purposes.

Algold Resources Ltd. is exploring three prospective gold projects in Mauritania.

photo credit: Algold