Gold79 Mines (AUU.V) has now closed a second tranche of its ongoing financing where it is trying to raise C$6M in a financing priced at C$0.25. Each unit consists of one common share as well as halffa warrant with each full warrant allowing the warrant holder to acquire an additional share at C$0.40 for a period of two years. There is an acceleration clause attached to the warrants, as they will be subject to early expiration if the 20 day VWAP exceeds C$0.60 during a ten day period.
The second tranche consisted of C$3.3M which means the company has now raised a total of C$5.5M in this unit financing. A third tranche is underway and will likely add another half million dollars to allow the company to meet the upsized C$6M financing target.
The company was required to raise at least C$4M as part of its strategic deal with Bullet Exploration (AMMO.V) as both companies will combine into one larger entity with assets in Arizona and Nevada. The Bullet shareholders will vote on the transaction next week but we do not anticipate any issues and expect the transaction to be consummated shortly there after.
Disclosure: The author has participated in the Gold79 financing.. Please read the disclaimer.
