Vancouver — With interests in two advanced projects in Nunavut, Cumberland Resources (CBD-T) is hoping to add $1.1 million to its coffers by selling 1 million units priced at $1.10 each.
Each unit holds one flow-through share and one warrant. Two warrants entitle the holder to purchase one share at $1.20 for the first year or $1.50 for the second year. As the agent, Canaccord Capital will receive a 7.5% commission and 100,000 warrants priced at $1.10 each. These warrants will expire in two years.
Cumberland will use the funds to advance its Canadian gold properties.
The junior holds a 22% interest in the Meliadine West project. This is operated by WMC International of Australia, which recently placed its gold assets on the block, including its 66% stake in Meliadine West.
The property hosts a resource of 4.9 million oz. gold grading 4.7 grams gold per tonne. Over the past six years, WMC has spent $50 million to develop a resource within four zones.
The company’s wholly owned Meadowbank project, 75 km east of Baker Lake, hosts resources (in all categories) of 7.1 million tonnes grading 5.93 grams, or 2.1 million contained ounces of gold, of which 962,400 oz. are classified as proven and probable.
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