Vancouver — Bema Gold (BGO-T) has arranged a $7 million financing through Canaccord Capital and Haywood Securities. The money will go towards its Julietta gold-silver mine in Russia.
The offering will consist of 14 million units comprised of one common share and one half warrant for a two-year period. The unit price is set at 50 per unit with a 70 warrant in the first year and a 90 warrant in the second. There is also a 15% green-shoe associated with this offering. Each common share will be free trading upon receipt of the prospectus.
Bema states that the net proceeds of the offering will be put towards exploration and development drilling at its high grade Julietta Mine in Far East Russia as well as working capital and general corporate purposes.
The Julietta mine commenced commercial production on December 1st. The mine is projected to crank out 400 tonnes of ore per day and produce an estimated 140,000 ounces of gold and 2.4 million ounces of silver, during its first year of operation. Cash operating costs per ounce of gold and net of silver credits is estimated at US$25 per oz. Total cash costs per ounce is estimated at US$70. Bema reports that over the first four years of production the mine plan estimates an average annual production of 100,000 ounces of gold and 1.7 million ounces of silver. Cash operating costs, net of silver credits, are pegged at about US$56 per oz. gold and total cash costs are estimated at US$100 per oz gold. The total cash cost calculations included direct mining expenses, mine development expenses, smelting and refining charges, transportation and selling expenses, royalties and production taxes, minus silver by-product credits. Silver by-product credits based on a value of US$4.50 per oz. silver.
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