Armada Gold (ASE) has completed equity financing worth $10 million in order to fund a feasibility study at the Baley open-pit gold project in eastern Siberia.
Each unit consists of one class A common share and half a class A common share purchase warrant priced at $2. Each full purchase warrant plus $2.50 will enable the holder to buy an additional class A common share for a period of one year. One full warrant plus $3 will enable the holder to buy an additional common share in the second year.
A feasibility study last year concluded the project could support daily production of 16,500 tons, which would yield 470,000 oz. gold per year at a cash operating cost of US$147 per oz. In addition, two tailings dams contain 1.3 million oz.
Armada owns a 64% interest in the project, which contains reserves of 6.9 million oz. The company also has an interest in the Sredny-Golgotay and Verkhe-Aliinsko gold deposits, where reserves and resources total 845,000 oz.
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