Amarillo Gold Corp. said Aug. 29 that it has closed a private placement of 50,025,000 units, including the exercise of the over-allotment option, for about C$10 million to be used for advancing its exploration and development projects and for general corporate purposes.
Each unit is priced at 20 cents and consists of 1 common share and 1 common share purchase warrant. Each warrant is exercisable to acquire a common share at 30 cents per warrant share for a period of 24 months from the closing date.
Canadian billionaire Eric Sprott, through 2176423 Ontario Ltd., acquired 25.0 million of the units or 13.1% of the issued and outstanding shares on a non-diluted basis, and 23.2% on a partially diluted basis, assuming the exercise of the warrants.
Company insiders subscribed for 1,101,000 units offered in the placement.
Earlier in August, Amarillo Gold increased the offering to C$8.7 million from C$5 million previously for completing the feasibility study and the license application at the Mara Rosa gold project in Goias, Brazil, in 2019.