Contact Gold (C.V) has received exchange approval to increase the size of its previously announced private placement from C$750,000 to C$1.25M at the same terms. Each unit will be priced at C$0.10 (so 12.5M units will be issued if the upsized placement gets fully subscribed) and will contain one common share and a full warrant exercisable for 2 years at C$0.15/share.
As Contact Gold closed at C$0.15/share, the private placement offers investors the opportunity to acquire stock at a 33% discount (while the warrant is on the verge of being in the money) and hopefully the C$0.5M increase will allow Contact Gold to conduct a more meaningful drill program at Green Springs where it encountered high-grade oxide mineralization in its previous drill program.
A first tranche of C$752,000 (issuing 7.52M units) has now been closed, and Contact Gold aims to complete the second tranche by the end of this week.
Disclosure: The author has a long position in Contact Gold and participated in the first tranche of the financing. Contact Gold is a sponsor of the website.
