REBgold () plans to raise $2million through a private placing to fund work at its Finnish projects, it emerged.
The fundraising with new and existing shareholders will see up to 5 million units issued at
.40 per unit.
The company, which also proposes to consolidate its shares, said each unit would consist of one post-consolidation common share and one warrant, entitling the bearer to purchase one additional common share at a price of $1.00.
The warrants expire on November 10, 2016.
REBgold wants to use the cash to continue work at its projects in Finland, including expanding the drill programme at Rantasalmi where there are numerous targets along strike and down dip from existing resources and other areas of identified mineralisation.
It will also be used for general working capital.
The firm told investors today that it had received a lead order subscription for 1.85 million units, or ($740,000) from a new investor and received interest from other parties.
The share consolidation, which is subject to approval at a shareholder meeting on May 23, sees one post-consolidation common share for each ten common shares currently outstanding.
The company currently has around 182.25 million issued and outstanding shares and would have around 18.22 mln issued and outstanding shares following consolidation.
Last month, the company confirmed a new high grade gold discovery at the Rantasalmi gold property in Finland, which is a joint venture between the company and ().
It has revealed that a recently completed drill programme at the Osikonmäki East prospect’s Upper East HW zone confirmed the initial find, announced last year.
Drilling has continued to develop and extend the Upper East HW zone, it said. And one drill hole in particular, tagged BELOSI 081, was mineralised for almost its entire 205 metre length, it added.
This zone is now considered by Belvedere to be a significant new discovery.