Continental Gold announces $175 million in financing from Newmont, Triple Flag, stock surges
Continental Gold鈥檚聽(TSX:CNL; OTCQX:CGOOF) shares surged over 11% on Friday, the same day the Toronto- based miner announced that it obtained a聽$175 million聽financing package backed by Newmont and Triple Flag Mining Finance.
The package includes a $50 million聽debenture from Newmont, and a聽$100 million聽gold and silver stream from Triple Flag . Each of the debentures will be convertible at the holder’s option into common shares of the company at a conversion price of聽C$3.00聽per share, representing a 27.1% premium to the 30-day volume weighted average share price on the TSX. Assuming full conversion of the debenture issued to Newmont only, Newmont’s ownership in Continental would increase to approximately 28%.
Continental Gold is an advanced-stage exploration and development company with a portfolio of 100%-owned gold projects in聽Colombia.
Proceeds from the financing package will be used for general and working capital purposes and toward construction, commissioning and start-up of the Buritic谩 project in Antioquia,聽Colombia, the
Continental鈥檚 shares were trading at C$2.89 on the TSX Friday afternoon, up 11.15%.
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