• Arizona-based Tristar Gold (TSG) has finalised its bought deal financing, raising a total of approximately C$9.2 million to fund its operations in Brazil
  • Under the offering, the company issued a total of 30.7 million units at a price of 30 cents each
  • Each unit consist of one common share in the company and half of one common share purchase warrant
  • The proceeds will be used to accelerate exploration efforts at its Castelo de Sonhos gold project
  • Tristar Gold (TSG) is up 1.39 per cent and is trading at 36 cents per share 

Arizona-based Tristar Gold (TSG) has finalised its bought deal financing, raising a total of approximately C$9.2 million to fund its operations in Brazil.

Under the terms of the offering, which was originally announced on June 22, 2020, the company issued a total of 30.7 million units at a price of 30 cents each, which includes the exercise of an over-allotment option granted to the underwriters.

These units are comprised of one common share in the company and half of one common share purchase warrant. Each whole warrant will be exercisable at a price of 40 cents per share for a period of two years from the date of issuance.

Cormack Securities acted as lead underwriter for the offering, leading a syndicate of others that included Red Cloud Securities and Canaccord Genuity. As consideration for their services, the underwriters received a cash commission equal to six per cent of the total amount raised.

TriStar Gold plans to use the proceeds raised under the offering to further advance work at its Castelo de Sonhos gold project in southwestern Pará state, Brazil, as well as for general working capital purposes.

Nick Appleyard, President and CEO of TriStar Gold, said the financing is a substantial capability boost for its Brazilian operations.

“This financing gives us the working capital we need to accelerate our exploration efforts in parallel with completing our fully funded prefeasibility study (scheduled for completion early next year).

“Over the last few months, our team working with GoldSpot Discoveries, have been refining multiple exploration targets, that we will be ready to drill in the third quarter of this year,” he added.

TriStar Gold (TSG) is up 1.39 per cent and is trading at 36 cents per share at 1:11pm EDT.

More From The Market Online

Usha Resources begins phase 4 fieldwork at White Willow Project

Usha Resources (TSXV:USHA) has begun the fourth phase of fieldwork at its White Willow Lithium Project in Ontario following phase 3 work.

Alamos and Argonaut merge to create one of Canada’s largest gold mines

Alamos Gold (TSX:AGI) announces it will acquire all of the issued and outstanding shares of Argonaut Gold (TSX:AR) in a friendly takeover.