Santa Cruz Gold raises $3 million

CDN-listed Santa Cruz Gold has completed a private placement of 6 million special warrants priced at 50 cents each.

A special warrant is exchangeable for one unit consisting of one common share and half a common share purchase warrant. A whole common share purchase warrant entitles the holder to buy an additional common share at 75 cents until Nov. 21, 1996.

Santa Cruz will use $750,000 of the net proceeds to buy 5 million shares (or 9% of those outstanding) in Australian-listed Mogul Mining. The remainder of the proceeds will be used to explore and develop Mogul’s Magistral gold project. About $2 million in proceeds has been put in escrow pending approval, by Mogul shareholders, of the sale of the Magistral gold project to Santa Cruz.