Serabi Gold PLC will receive a US$15 million investment from Greenstone Resources II LP for a 29.82% interest in the company.
The mining-focused private equity fund will subscribe for 297,759,419 new shares at 3.6 British pence per share.
The company plans to use the proceeds to partially fund the acquisition and current-year working capital of the Coringa project and for drilling at the Palito and Sao Chico projects, all in Brazil, and for corporate working capital.
Following the subscription, the interest of Fratelli Investments in Serabi will reduce to 38.69% from 55.13%. Meanwhile, Greenstone advisory services provider Mark Sawyer will join Serabi's board, effective immediately.