Columbus Gold (CGT.V) has announced a private placement of up to C$10M by issuing up to 20M units at C$0.50 per unit. Each unit consists of one share and half a warrant valid for one year at an exercise price of C$0.75.
As Columbus Gold had a working capital position of C$7.1M as of at the end of June and as this placement will happen at a 16% premium to the share price at yesterday’s closing bell, it looks like Columbus Gold was offered money at a premium and it wouldn’t be wise to refuse it.
> Click here to read the press release
Disclosure: The author holds a long position in Columbus Gold. Please see our disclaimer for current positions.
