- Antilles Gold (AAU) is looking to raise $3.25 million in fresh capital for the La Demajagua gold-silver mine in southwest Cuba
- The company will issue 50 million shares at 6.5 cents each and for every two shares, investors will receive one option exercisable at 13 cents by April 30, 2023
- Antilles is using the funds to develop the La Demajagua open-pit mine, for which a definitive feasibility study is currently underway
- AAU shares have been trading 2.74 per cent lower at 7.1 cents
Antilles Gold (AAU) is looking to raise $3.25 million in fresh capital for the La Demajagua gold-silver mine in southwest Cuba.
The company will issue 50 million new shares at 6.5 cents on or about April 5.
In addition, 25 million new options attached to the new shares will be issued free to recipients on a one-for-two basis.
The options have an exercise price of 13 cents each and will expire on April 30, 2023.
The capital raise was led by Kuala Lumpur-based advisory firm JS-First Sdn Bhd, which will be issued one million new options as part of its fees.
Antilles Gold will specifically use the funds for the proposed La Demajagua open pit gold-silver mine in southwest Cuba.
The project is held by Minera La Victoria SA, a 49:51 joint venture company established by Antilles and the Cuban Government’s mining company GeoMinera SA.
In a recent announcement, Antilles confirmed it was targeting total production of 4.87 million tonnes of ore from the mine over the course of six years.
The production target is based on mining 100 per cent of the indicated resource for the open pit mine of 4.67 million tonnes, plus 230,000 tonnes of the 3.1-million-tonne inferred resource.
A definitive feasibility study is underway for the La Demajagua project and is expected to be completed in November.
AAU shares were down 2.74 per cent to trade at 7.1 cents at 1:43 pm AEDT.