COLOMBIA – Continental Gold of Toronto has closed a $28.75-million bought deal including the over-allotment. Net proceeds of the offering will be used primarily to fund exploration and development at the Buritica gold-silver project in the Antioquia department.
Continental issued 11.50 million units at a price of $2.50 per unit. They were bought by a syndicate of underwriters led by TD Securities and Clarus Securities. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share at a price of $4.75 any time during the next 18 months.
Continental is the sole owner of the Buritica gold-silver project that has been producing at a rate of 30 t/d for 23 years. Considered a “pilot scale” mine, the project has been operating at very high grades as development chases the underground veins. In 2015 the grade was 31.19 g/t Au. Now production is to be stepped up to 2,100 t/d and then up to 3,000 t/d by year three of a 14-year mine life. An estimated 3.5 million oz of gold will be recovered. Total cost of the expansion will be US$389.2 million. All-in sustaining and construction costs will be US$604 per payable oz. Production could begin in the second half of 2019.
Please visit www.ContinentalGold.com for detailed information about Buritica.