THE BOURSE WHISPERER: Canada-focused gold exploration play Coventry Resources is set to bank $5 million having received commitments for the placement of 41.67 million new shares at a price of 12 cents per share.
The shares will be placed to North American institutional investors that are clients of Casimir Capital, which acted as lead broker for the raising as well as Australian institutional and sophisticated investors that are clients of Blackswan Equities.
In a company release to the Australian Securities Exchange, Coventry said it intends putting the funds to good use by completing a prefeasibility study at its 1.4 million ounce Cameron gold project in Ontario, Canada.
The company will continue mine permitting activities at Cameron while it continues to conduct further drilling programs at the project in order to evaluate potential extensions of the Cameron gold deposit.
It also intends checking out a number of regional prospects it has delineated within the project to be of high priority to its progress.
Coventry also flagged its intention to carry out an inaugural diamond drilling program at the Rainy River project to follow-up anyn geochemical anomalies that may come out of a current RC drilling overburden sampling program.
The placement will be completed in two tranches, the first of which will comprise the issue of 25.92 million shares (approximately 62 per cent of the placement) under the company’s 15 per cent capacity. This tranche will settle sometime in April 2012.
A shareholder general meeting will be held in May where the company will seek approval for the second tranche for the remaining 15.75 million shares.