Goldfields arranges Aurora financing

A private placement with major shareholder Gwalia Consolidated will provide up to US$1.37 million for Consolidated Nevada Goldfields (TSE).

Gwalia agreed to purchase a minimum of 1.82 million and up to 2.5 million cumulative, preferential, convertible, preferred shares for US55 cents each. The shares carry a 3% coupon and are convertible on a 1-for-1 basis to common shares for five years. The transaction is subject to board and regulatory approval as well as certain conditions set by Gwalia.

Gwalia, which owns about 7.8 million shares of Goldfields, plans to sell up to 2.4 million of its holdings through a private transaction to raise the funds for the preferred placement.

Goldfields plans to use the funds to expand its Aurora mine operations in Nevada, as well as for corporate purposes.

Following the discovery of new reserves in the Chesco pit area, reserves at the Aurora mine were last estimated at 493,000 tons grading 0.15 oz. gold per ton.