- 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.