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Edgewater closes first tranche of $11 million private placement

Edgewater Exploration (CVE:EDW) announced Monday it has completed the first tranche of its non-brokered private placement of $11 million.

The first tranche saw the mineral exploration company issue 13.03 million units, each consisting of one common share and one half of one common share purchase warrant, at $0.80 per unit.

One whole warrant entitles the holder to acquire an additional share for $1.10 for two years following the closing date. The issuance saw gross proceeds of $10.4 million.

Kinross Gold (TSE:K) (NYSE:KGC) purchased 625,000 units in association with the first tranche, and now holds 12.7% of Edgewater's outstanding shares, should the company exercise its warrants.

Edgewater, who has historically producing gold projects in Ghana and in Spain, said it expects to complete its private placement through the issuance of another 720,000 units, for gross proceeds of $576,000 shortly.