Goldenbell to raise about $25 million for Pine Tree project

Goldenbell Resources Inc. says under a private placement arrangement Sonora Gold Corp. will purchase 9,259,000 shares of Goldenbell at $2.70(US) per share.

Goldenbell says the deal is contingent on completion of a financing in Sonora by a placee, pursuant to a public offering in the U.S.

Mauro Berretta, president of Goldenbell says the proceeds of about $25,000,000, will be used to fund approximately one-half of the capital costs for the company’s Pine Tree gold project in California.

Goldenbell said recently (N.M., Feb 23/87), that construction at the project could begin in mid-year, with production to start one year later. The open pit mining operation is expected to produce 130,000 oz gold annually, at a cost per oz of $229.