Shares of Caribgold Resources recently began trading on the Canadian Dealing Network (CDN). The company is headed by David Bell, a well-known consulting geologist and a key figure in the famous Hemlo gold discovery in northwestern Ontario.
The listing follows Caribgold’s signing of agreements awarding them exclusive prospecting, exploration and exploitation rights for precious and base metals on about 800,000 acres in Cuba. The agreements allow Caribgold to earn a half interest in potentially exploitable deposits in a joint-venture arrangement with Geominera S.A., a Cuban government entity created to handle mineral agreements with foreign companies.
To fund its Cuban exploration program, Caribgold raised $4.1 million in Europe by issuing 2.5 million units at $1.65 each. Each unit consists of one common share and a half warrant; two half warrants can be exchanged for a common share at $2 up to Dec. 31, 1994.
Release of these funds are conditional on Caribgold’s shares being listed on the Toronto Stock Exchange. Following the closing of this financing, Caribgold will have 7.6 million shares outstanding and more than $5 million in cash.
In an earlier transaction, Euro-Nevada Mining (TSE) and Redstone Resources (TSE) invested $200,000 in Caribgold in return for a 1% net smelter return on all future production from the properties.
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