Atlantic Gold Corp.said May 3 that it has entered into gold price hedging contracts covering 100,000ounces of production from its MooseRiver Consolidated gold project in Nova Scotia.
The contracts were executed on a spot price basis of C$1,619per ounce, and will be scheduled out for delivery over the term of the company'sproject loan facility.
As a condition of the credit facility agreement, the companywas to enter into margin-free gold forward sales contracts of 215,000 ounces, representingabout 30% of total recovered life of mine gold production of the project at a minimumforward price of C$1,500.
Separately, the underwriters for Atlantic Gold's bought-deal privateplacement have exercised their overallotment option in full to purchase an additional3,125,010 common shares at 60 Canadian cents each, raising additional proceeds ofC$1.9 million.
As a result, the company has raised total proceeds of C$14.4million in the brokered placement.
The company was planning an underwritten bought deal privateplacement financing for C$12.5 million and a nonbrokered placement for the sameamount.