PNG Gold raises C$38.4m to fund projects

 CANADIAN mining and exploration company PNG Gold Corp has closed its previously announced private placement offering led by Canaccord Genuity Corp and Paradigm Capital Inc as co-agents.

PNG Gold issued a total of 51,157 522 common shares including shares issued on partial exercise of the over-allotment option, at a price of C$0.75 per share to raise gross proceeds of C$38,368,141.50.

In a statement yesterday, PNG Gold said the agents were paid a cash commission which was 6% of the gross proceeds, and issued warrants equal to 66 of the number of common shares sold.

Each agent’s warrants was exercisable for 18 months to purchase a common share at C$0.75 per share. 

The private placement was subject to the final acceptance by the Toronto Stock Exchange.

The company said the common shares issued under this offering and any common shares issued on exercise of the agent’s warrant would be subject to a hold period of four months plus one day from yesterday.

The proceeds would be used to fund exploration and development work on the company’s Imwauna and Sehula properties on Normanby Island in Milne Bay and for general working capital.

President and chief executive officer Dick Whittington said: “We are very pleased to close this private placement under difficult market circumstances and particularly given the current uncertain global economic environment market.