Golden Mile Resources (ASX:G88) - Managing Director, James Merrillees
Managing Director, James Merrillees
Source: Resources Roadhouse
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  • Cygnus Gold (CY5) is up 125 per cent today, despite Managing Director James Merrillees announcing his immediate resignation
  • However, he will stay with the company in a consulting role
  • In a busy day, Cygnus also received firm commitments to raise $1.37 million
  • More than 30 million shares will be issued to sophisticated and professional investors at a price of 4.5 cents per share
  • As well as the placement shares, 29.5 million unquoted options will be issued with an exercise price of eight cents and an expiry of three years once issued
  • Cygnus will use the money for exploration activities, tenement holding expenses, business development opportunities, and general working capital.
  • Company shares are still up a strong 118 per cent and are trading for 15.5 cents each

Cygnus Gold (CY5) is up 125 per cent today, despite Managing Director James Merrillees announcing his immediate resignation.

James has more than 20 years’ experience in minerals exploration and development throughout Australia, Asia, South America, Africa, and Europe.

Prior to joining Cygnus, he had a 12-year stint with BHP Billiton, and several other private gold and base metals explorers and producers. However, he will stay with Cygnus in a consulting role.

Additionally, Non-Executive Director Dr Oliver Kreuzer has announced his resignation effective immediately.

Ray Shorrocks and Shaun Hardcastle will also join the company as Non-Executive Directors.

Placement

Cygnus has also received firm commitments to raise $1.37 million through the means of a private placement.

A total of 30,455,556 fully paid ordinary shares will be issued to sophisticated and professional investors at a price of 4.5 cents per share.

This price represents an 11 per cent discount to the 60-day volume-weighted average price.

As well as the placement shares, Cygnus will issue 29.5 million unquoted options with an exercise price of eight cents and an expiry of three years once issued.

The placement will be undertaken in two phases with phase one to issue 10 million shares around July 7.

Phase two will issue the remaining 20,455,556 shares and all options, however, this is subject to shareholder approval at the next general meeting.

This phase also includes director participation, with those intending to subscribe for 5,677,778 placement shares and nine million options. This is also subject to shareholder approval.

Cygnus will use the money for exploration activities, tenement holding expenses, business development opportunities, and general working capital.

Company shares are still up a strong 118 per cent and are trading for 15.5 cents each at 2:14 pm AEST.

CY5 by the numbers
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