Toronto-based REBgold (CVE:RBG) has closed the first tranche of its non-brokered private placement financing announced earlier this month, with the funds to be used to secure additional project opportunities, as well as to continue investing in its Finnish properties.
It told investors Tuesday that it has issued $510,000 of 8% unsecured convertible debentures to Baker Steel Capital Managers LLP.
Baker Steel is currently REBgold's largest shareholder with a 17.4% stake.
The company said it expects to complete a second tranche of the placement in the next few weeks, and the final third tranche after its annual shareholder meeting on June 17.
Aside from new projects, and the continued investment in its existing properties, the company will also use the new funds for general working capital needs.
REBgold's Rantasalmi gold project in Finland is a joint venture with Belvedere Resources (CVE:BEL), formed in 2011, whereby REBgold has the right to earn an interest in two of Belvedere's properties, Kiimala and Rantasalmi. REBgold can earn a 50-per-cent interest in the properties by spending C$6 million over a four year period.
Under the terms of the joint venture, a completed feasibility study would result in an increase of between 55 and 75 per cent to REBgold's stake, depending on the level of Belvedere's contribution to the study.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.