Black Dragon Gold Corp. said March 29 that it plans to raise up to C$11 million through a private placement of 200 million units at 5.5 cents each to recapitalize the company.
Each unit comprises 1 share and 1 warrant, with each warrant exercisable for an additional common share at 11 cents per share for 24 months. The placement is expected to be completed by April 28.
The company is also issuing a US$250,000 convertible debenture to institutional investors to ensure sufficient capital until the placement closes. The one-year debenture bears interest at 15% per annum and is convertible at 5.5 cents per share.
Each C$1,000 in principal amount of the debentures also includes 18,181 share purchase warrants, with each warrant exercisable on the same terms as the placement. The warrants are also subject to an acceleration clause.
In addition, Black Dragon said it renegotiated an existing debt facility to US$3.2 million.
The company, previously known as Astur Gold, aims to move its Salave gold project in Spain toward financing after settling its financial issues.
"We now look forward to focusing on finalizing the financings and then releasing a feasibility study and reengaging with the Salave stakeholders to permit an operation that is beneficial to all involved," President and CEO Brian Wesson said.