- Mining company Black Dragon Gold (BDG) has completed its recently announced private placement, after raising $1.5 million in proceeds
- During the placement, the company allotted over 21 million ordinary shares, at seven cents each
- Black Dragon’s shares were issued in the form of CHESS Depositary Interests
- The proceeds will primarily help fund progression at the company’s Salave gold project in north-western Spain
- Despite the capital raise, Black Dragon Gold closed 6.67 per cent in the red for 9.8 cents per share
Mining company Black Dragon Gold (CODE) has completed its recently announced private placement, after raising $1.5 million in proceeds.
The company first announced plans for a capital raise on August 13, following up with more details on August 19. In the lead-up to the private placement, Black Dragon received commitments from institutional and sophisticated investors for over 21 million CHESS depositary interests.
During the placement, the company issued 21,428,572 of its ordinary shares, at a price of seven cents each. Black Dragon issued its placement shares in the form of CDI’s.
The company issued 10,235,638 of its shares under ASX Listing Rule 7.1, with the remaining 11,192,934 shares issued under ASX Listing Rule 7.1A.
Proceeds from the private placement will primarily help fund progression at the company’s Salave gold project. The project, located in the north-western Spanish province of Asturias, is one of the largest undeveloped gold projects in Europe.
Black Dragon has previously faced delays in obtaining environmental clearance for the project. This was due to the total lockdown which Spain entered in March, after being severely hit by the COVID-19 pandemic.
While the virus seemed to be subsiding in June, a resurgence of cases began in July, in cities including Barcelona and Madrid. As such, some lockdown restrictions have been reimposed, casting doubt on when Black Dragon will be able to progress at the Salave Project.
Funds will also go towards covering costs incurred in connection with due diligence for potential complementary resource project acquisition. Some will also go towards covering the costs of the company’s capital raising, and general working capital.
Despite the capital raise, Black Dragon Gold closed 6.67 per cent in the red for 9.8 cents per share.