The mineral potential of Cuba and the large land package held in that country by Holmer Gold Mines (ASE) have prompted Caledonia Mining (TSE) to pursue an investment position in that company.
Caledonia plans to take an investment position in Holmer of 4.6 million shares and an equal number of warrants. The agreement also calls for Caledonia to make a $3-million private placement in Holmer, in return for 2.7 million Holder shares and an equal number of warrants.
Holmer, in turn, will execute a private placement in Caledonia for $3 million, in return for 392,157 Caledonia shares and an equal number of warrants.
The transactions are still subject to regulatory and shareholder approval.
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