Total
0
Shares
Caldas Gold - Incoming CEO, Neil Woodyer - The Market Herald Canada
Incoming CEO, Neil Woodyer
Source: Mining Journal
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Caldas Gold (CGC) has raised C$85 million in a private placement ahead of a revised leadership team and a corporate name change
  • The proceeds have been put into escrow and will be released on March 31, 2021, upon the satisfaction of certain conditions
  • These include the completion of a Board reorganisation, a change of the company name to Aris Gold Corporation, and the upholding on an investor agreement with Gran Columbia Gold
  • Neil Woodyer is expected to take over a CEO, while Canadian billionaire Frank Giustra will act as a strategic advisor
  • Caldas Gold is currently steady at $2.40 per share

Caldas Gold (CGC) has raised C$85 million in a private placement ahead of a revised leadership team and a corporate name change.

The proceeds have been deposited in escrow and will be released on March 31 next year upon the completion of certain conditions.

These include obtaining an extension of the Zona Baja mining concession for a minimum of 20 years, the reorganisation of the company's Board, a name change to Aris Gold Corporation, and the upholding of an investor agreement with Gran Columbia Gold.

Such an agreement provides that, as long as Gran Columbia holds more than a 20 per cent stake in Caldas, it has the right to appoint two directors to Caldas' Board of Directors and is required to vote in accordance with recommendations by Caldas' management.

Gran Columbia will also have the right to participate in future financings to maintain its 20 per cent equity interest.

Pursuant to the recently completed offering, Gran Columbia purchased just over 7.5 million subscription receipts worth $17 million, representing a 44.3 per cent holding in Caldas on an undiluted basis.

Following the constitution of the new Board, Neil Woodyer is expected to take over as CEO, leading a new management team based in Vancouver with Canadian billionaire Frank Giustra set to join the company as a strategic advisor.

"Completing this equity financing is our first exciting milestone toward building Aris Gold into an Americas-focused precious metals producer," Neil said.

"We are working closely with the Caldas Gold team on plans for advancing the Caldas mine expansion project, which includes the development of the Deeps Zone mineralisation and construction of a new 4,000 [tonnes per day] processing facility to significantly increase gold production rates," he added.

The management and Board transition is anticipated to be finalised early next year.

Caldas Gold is currently steady at $2.40 per share, as of 11:15am EST.

More From The Market Herald
Ground magnetic survey expands target areas at Eloro Resources’ (TSXV:ELO) Iska Iska Project

" Eloro Resources (TSXV:ELO) provides update on its Iska Iska silver-tin polymetallic project

Eloro Resources (ELO) is pleased to provide an update on its Iska Iska silver-tin polymetallic project in Potosi Department, southern Bolivia.
TomaGold (TSXV:LOT) intersects 47.4 g/t Au and 87.6 g/t Ag over 1.1 metres on Obalski

" Manitou Gold (TSXV:MTU) discovers new gold zone on the Goudreau Project

Manitou Gold (MTU) has identified a new gold zone, the Bald Eagle Gold Zone (BEGZ), on its Goudreau project in northeastern Ontario.
Benchmark Metals (TSXV:BNCH) announces fully exercised warrants led by Eric Sprott

" Benchmark Metals (TSXV:BNCH) announces fully exercised warrants led by Eric Sprott

Benchmark Metals (BNCH) has announced that the 10,473,163 warrants that were due to expire have been fully exercised.
Prime Meridian Resources Corp. (TSXV:PMR) acquires Kelly Project expansion & financing

" Prime Meridian Resources Corp. (TSXV:PMR) acquires Kelly Project expansion & financing

Prime Meridian Resources Corp. (PMR) has acquired, through staking, an additional block of claims.