U.S. Gold Corp. (NASDAQ) has completed a $12.75 million(US) private placement. Combined with an $18 million gold loan, the financing will provide the required funding for the expansion of a gold mining operation in Nevada. Prudential-Bache Capital Funding arranged the private placement of convertible subordinated debentures plus warrants. Three institutional investors purchased the issue.
The debentures pay 10.93% interest over an average term of 10 years and are convertible into U.S. Gold common shares at a price of $2 per share.
The company is expanding its Tonkin Springs bioleaching operation, which is expected to produce 50,000 oz of gold per year. Operations are scheduled to begin in the second quarter of 1989.
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