Canadian explorer Inter-Citic Minerals (TSE:ICI) reported Tuesday that it has completed the first tranche of its non-brokered private placement financing, raising $12.6 million.
The total offering, announced in late May, consists of 11 million units for a price of $1.90 per unit, for gross proceeds of $21 million. Each unit consists of one common share and one-half of one common share-purchase warrant, with each whole warrant giving the holder a right to acquire one additional share at a price of $2.00 for a two year period from the closing date.
On Monday, the company sold 6.6 million units, primarily to investors in China, completing the first part of the placement. The second tranche, which the gold explorer expects will total up to $8.4 million, is expected to close July 8.
The company said the proceeds will be used to advance its Dachang gold project in China to complete a feasibility study this year, as well as other advanced engineering studies to complete mine permitting processes and continued regional exploration for further resource expansion.
Toronto-based Inter-Citic is engaged in the exploration and development of mineral properties in China. The company's Dachang Gold project is a 279 kilometre property in the Qinghai Province in the western part of the country. It is a newly-discovered system of at-surface gold mineralization in an under-explored district, Inter-Citic said.