Golden Predator Royalty & Development Corp (TSX: GPD) is set to raise C$5 million via the sale of 8.35 million shares to a syndicate of agents including Canaccord Financial (TSX & AIM: CCI) and PI Financial Corp.
The agent have also been granted an over-allotment option to sell up to 1.7 million additional flow-through shares for proceeds of up to C$1.02 million. The option is exercisable prior to the closing of the offering.
The sale price of C$0.60 equals the stock’s closing price on Monday, 5 April.
Closing of the offering is anticipated to occur on or before 20 April 2010 and is subject to receipt of applicable regulatory approvals including approval of the Toronto Stock Exchange.
The proceeds will be used to conduct exploration on Golden Predator’s projects located in the Yukon's Tintina gold belt.
The Tintina gold belt hosts deposits including Donlin Creek with proven and probable reserves of 29.3 Moz (million ounces) of gold, Fort Knox with 3.8 Moz in the proven and probable category, Pogo with 3.6 Moz proven and probable, Dublin Gulch with an indicated gold resource of 2.7 Moz.
It also includes past producers with remaining resources such as Brewery Creek, which has a resource of 145,000 oz in the indicated category and 143,000 oz inferred and where about 278,484 oz was produced, and several advanced staged exploration projects including Freegold Mountain and White Gold.
Disclosure: The author holds no positions in the company