Pangea arranges $9.9-million financing
Pangea Goldfields Inc PGD
Shares issued 21,572,320 Jun 6 close $4.70
Wed 7 Jun 2000 News Release
Mr. Jean-Charles Potvin reports
Pangea Goldfields has signed an agency engagement letter with Loewen, Ondaatje, McCutcheon Ltd. and Sprott Securities of Toronto to raise up to $9.9-million through the sale of special warrants. The common shares underlying the special warrants will be qualified by a short form prospectus immediately upon closing. The special warrants are priced at $4.50 each and will be placed on a best-efforts basis to qualified institutional investors. The agents have advised Pangea that orders have been received for more than $10-million of the special warrants. This transaction, which is expected to close on or before June 29, 2000, is subject to regulatory approval.
J.C. Potvin, president, said the net proceeds of the issue together with its current cash will increase Pangea?s cash position to over $18-million. The funds will be applied toward funding the feasibility study at Tulawaka, continuing an active exploration program on other key properties in Tanzania and Peru, as well as capitalizing on new opportunities. The company is currently drilling on a number of properties including Tulawaka -- a one-million-ounce high-grade gold deposit (1.67 million tonnes at 19 grams per tonne) -- and at the Kakindu project located east of Tulawaka, and at the Pukaqaqa project in Peru. In addition, a RAB drill program will commence shortly at the 100-per-cent-owned Muhama property located contiguous to Tulawaka. Pangea currently has a gold resource in excess of 3.2 million ounces.
Upon completion of this transaction, the company will have 24.6 million shares issued and outstanding.
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