JOHANNESBURG (miningweekly.com) – TSX-V-listed Garibaldi on Monday confirmed the closing of the first tranche of its recently announced $10-million private placement for gross proceeds of $8-million.
The junior exploration company issued 2.54-million units at $3.15 apiece, with each unit comprising one common share and one full share purchase warrant exercisable at a price of $4.50 a share for a period of two years.
Of the units issued, Ontario Limited, a corporation beneficially owned by Eric Sprott, has acquired 1.59-million units, representing gross proceeds of $5-million.
As a result of the closing of this first tranche, Sprott now beneficially owns and controls 11.7% of the issued and outstanding common shares of Garibaldi on a nondiluted basis and 16.5% on a partially diluted basis.
Proceeds from the first tranche will be used to further advance the E&L Nickel Mountain project in addition to other Garibaldi properties in the Eskay Camp and elsewhere in British Columbia, as well as be applied to the company's gold and silver properties in Mexico.