A private placement is expected to provide Black Swan Gold Mines (TSE) with $1.2 million, which it will use to acquire and develop the Santa Helena and Novo Mundo gold prospects in Brazil.
The placement consists of 8.7 million special warrants, and Black Swan expects to issue a further 3.2 million special warrants at 15 cents each in the near future. The special warrants convert into one common share, and one purchase warrant which is exercisable for two years at 15 cents per share. Black Swan acquired an option on the two properties from a third party in return for the issuance of 4 million common shares and 5 million special warrants. The company will also pay a further $750,000 in cash later this year.
Black Swan has already paid the underlying property-holders US$320,000 and can complete the acquisition by paying a further US$1.8 million. Both Santa Helena and Novo Mundo host oxide surface showings which were worked by local miners to a depth of about 10 metres. Unable to deal with the underlying sulphide nature of the gold mineralization, the local miners have since left the property.
Sampling on the bottom of a pit on the Santa Helena prospect returned values ranging from 1.27 grams gold per tonne over 1 metre to 46.3 grams over 1 metre within a 7-metre-wide shear zone.
Drill results from an initial 16-hole program on Santa Helena are expected within the next few weeks.
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