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Edgewater completes final tranche of $11m private placement financing

Edgewater Exploration (CVE:EDW) said on Wednesday that it has finalized the second and final tranche of its previously announced non-brokered private placement of $11 million.

The final tranche consisted of the remaining 720,000 units at 80 cents per unit, for a sum total of $576,000, completing a combined sale of 13.75 million units for gross proceeds of $11 million.

Each unit consists of one common share and one half of a common share purchase warrant, with each whole warrant giving the holder the right to buy an additional share for $1.10 for a period of 24 months from the closing date.

The first tranche of the private placement consisted of 13 million units at 80 cents each for gross proceeds of $10.42 million.

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

Edgewater paid a cash finder's fee of $582,400 and issued 121,062 common shares in connection with financing.

The company said it has $18.5 million in the treasury and 66.68 million common shares issued and outstanding, after the completion of the offering.

Proceeds will be used to advance the company’s Corcoesto gold project in northwest Spain, as well as its Enchi property in Ghana, West Africa.

Edgewater is a mineral exploration company focused on the development of precious metal properties.