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- Antilles Gold (AAU) aims to raise $2 million of fresh capital to fund drilling at its El Pilar copper-gold porphyry deposit in Cuba
- The company will issue 64 million new shares at 3.3 cents each, with three million of these to be issued to the company’s Chairman, Brian Johnson
- To ensure adequate funding until June 2023, Moonstar Investments will provide a $1 million face-value convertible note with an eight per cent annual interest rate to the company
- Additionally, the company is in negotiations to establish a facility that would fund the exploration programs in Cuba until 2024
- Shares in Antilles are down 5.41 per cent, trading at 3.5 cents as of 2:25 pm AEDT
Antilles Gold (AAU) is seeking to raise $2 million of fresh capital to fund a drilling program at its copper-gold porphyry deposit in Cuba.
The company is poised to issue 64 million new shares at 3.3 cents each. Of these 64 million, the majority will be dealt out to sophisticated investors around December 20, with the remaining three million issued to Antilles Chairman Brian Johnson, subject to shareholder approval.
The company told investors the funds raised will be spent on a drilling program at its El Pilar copper-gold porphyry deposit and its overlying gold-copper oxide cap in Central Cuba.
At El Pilar, the company’s first stage of drilling will involve 7000 metres of shallow 100 metre holes on the copper-gold oxide cap, and around five holes of 700 metres into the underlying copper porphyry deposit.
The program will commence in late January or early February 2023, with a more substantial follow-up program on the porphyry deposit to follow.
To ensure adequate funding until June 2023, the company’s Chairman advised his trustee company Moonstar Investments will provide a $1 million face-value convertible note with an eight per cent interest rate to the company, expiring on December 31 2023.
Additionally, AAU is in negotiations to establish a facility that would fund the exploration programs in Cuba until 2024, in a bid to minimise near term dilution for shareholders.
Antilles said it’s confident the facility and convertible note will be able to be repaid from its US$30 million (A$44.7 million) of contractual claims against the Dominican Republic government from a previous project.
Shares in Antilles were down 5.41 per cent, trading at 3.5 cents as of 2:25 pm AEDT.
