On November 29th, Batero Gold Corp. (TSX-V: BAT, FRA:68B) announced that they entered into a definitive strategic alliance agreement with Consorcio Minero Horizonte SA. This agreement includes the sale of 8,913,000 common shares at a price of $0.65 per share and 18,456,000 subscription receipts of the company at a price of $0.65 per subscription receipt, for a combined gross proceeds of $17,789,850.
The subscription receipts will automatically convert into an aggregate 18,456,000 common shares and 5,000,000 common share purchase warrants of the company with an an exercise price of $0.90. After this agreement the Horizonte Group controls approximately 35% of Batero’s issued and outstanding shares.
Besides the share placement, a loan of up to $2,210,150 is being provided for the development of their gold project.
We think that this agreement is an excellent deal for Batero as the current market conditions are killing a lot of junior mining companies who aren’t able to raise money.
Disclosure: The author holds a long position in Batero Gold Corp. Please see our disclaimer for current positions.
