Newmont purchases 37.38 million shares of Continental for a total of US$109 million
Continental Gold Inc. is pleased to announce that it has closed its previously-announced private placements to Newmont Mining Corporation and RK Mine Finance Master Fund I Limited (Red Kite).
Newmont purchased 37.38 million common shares of Continental at a price of C$4.00 per share for a total investment of US$109 million. Concurrent with Newmont’s investment in Continental, Red Kite also purchased 8.59 million common shares of Continental at a price of C$4.00 per share for a total investment of US$25 million, as contemplated in Continental’s secured project credit facility (the “Credit Facility”) with Red Kite. After giving effect to the private equity placements, Newmont and Red Kite own approximately 19.9% and 4.6%, respectively, of the issued and outstanding common shares of Continental on a non-diluted basis.
The Company intends to use the proceeds of Newmont’s investment to develop the Buriticá project and such proceeds satisfy the funding condition required to draw the second tranche of US$100 million under the Credit Facility.
Newmont purchased 37.38 million common shares of Continental at a price of C$4.00 per share for a total investment of US$109 million. Concurrent with Newmont’s investment in Continental, Red Kite also purchased 8.59 million common shares of Continental at a price of C$4.00 per share for a total investment of US$25 million, as contemplated in Continental’s secured project credit facility (the “Credit Facility”) with Red Kite. After giving effect to the private equity placements, Newmont and Red Kite own approximately 19.9% and 4.6%, respectively, of the issued and outstanding common shares of Continental on a non-diluted basis.
The Company intends to use the proceeds of Newmont’s investment to develop the Buriticá project and such proceeds satisfy the funding condition required to draw the second tranche of US$100 million under the Credit Facility.