Grandview gets the cash it needs to find Peruvian gold

Grandview Gold (GVX-T) has the money it needs to better partake in gold’s historically high prices via its exploration project in Peru.

On Dec. 8 the Toronto-based company announced it had closed a private placement with privately-held Centerpoint Resources that will put $2 million into its coffers.

The company will use the money to explore and develop its Giulianita project in Peru and to maintain its Canadian operations.

The placement will see 20 million units priced at 7.5¢ a piece issued to Centerpoint for $1.5 million in cash.

Each unit is made up of a common share and a warrant with a strike price of 12¢ and an expiration date of 2 years from now.

To make up the other $500,000, Grandview did a non-brokered financing resulting in the issuance of an additional 6.6 million units – much of which were bought up by directors and officers of Grandview

Grandview’s president and chief executive, Paul Sarjeant, says the decision to finance now had much to do with current high gold price environment.

“The time is right to aggressively pursue potential cash-flowing opportunities like our Giulianita project in Peru. The small mines model is an excellent base upon which to both lessen the company’s dependence on the capital markets and generate our own exploration funds,” Sarjeant said in a statement.

The deal will give Centerpoint a 28.% stake in the company prior to exercise of the warrants and will see its president, Jack Austin, join Grandview’ board of directors.