Talon Metals Corp. announced financial results for the quarter ended March 31, 2019. For these three months, the BVI corporation reported net loss of US$2.8mln or US$0.01 per share, compared to a net loss of US$2.0mln or US$0.02 per share for the quarter ended March 31, 2018. The year-over-year increase in net loss was mainly the result of a loss on the fair value revaluation of the Resource Capital Fund VI L.P. unsecured convertible loan, administration expenses and stock option compensation.
For the three months ended March 31, 2019, capitalized exploration costs and deferred expenditures on the Tamarack Nickel-Copper-Cobalt Project amounted to US$12.0mln before a recovery of US$4.8mln – compared to US$0.2mln for the three months ended March 31, 2018. The total net capitalized exploration cost on the project was US$47.2mln as at March 31, 2019.
BVI-registered Talon Metals Corp. announced the completion of a non-brokered private placement of 20,235,000 common shares at a price of US$0.0868 per common share for aggregate gross proceeds of US$1.75mln. Finder’s fee of 6% cash and 6% warrants are payable in connection with certain orders under the private placement, each warrant is exercisable to acquire one common share for a period of 36 months following the closing date at an exercise price of US$0.116 per common share.
The net proceeds from the private placement will be used by Talon Metals for ongoing test work in advance of the exploration program. The private placement is subject to the final approval of the TSX.
Also, the BVI corporation continued to progress discussions with battery and vehicle manufacturers, to optimize the value chain for nickel, from the mine to the battery.
Chaarat Gold Holdings Limited announced resolutions passed at the General Meeting held on 26 April 2019, according to which the company decided to extend the previously announced Capital Raising.
The BVI-registered gold mining company confirmed that to date gross proceeds made approximately US$1.34mln, from the issue of 3,433,897 new ordinary shares of USD 0.01 each at 30p per New Ordinary Share in the Placing. Also, there is the commitment to subscribe for US$10mln of Convertible Bonds which the company has already secured, as announced on 1 April 2019. The company expects to receive the subscription proceeds for the Convertible Bonds by 31 May 2019.
Admission of the New Ordinary Shares, which was applied for on the London Stock Exchange, is expected to be effective on 2 May 2019. Chaarat Gold Holdings received indication of additional demand for the Capital Raising., so it was decided to extend the closing date of the Placing and the Convertible Bond issue from 26 April 2019 to 3 May 2019.
Following the announcement made on 1 April 2019, the Company decided to increase the size of the Placing due to the demand from one of the leading global institutional investors.
BVI-incorporated mining company Chaarat Gold Holdings Limited proposed to raise Capital up to US$11mln, through a Convertible Bond issue of US$10mln and placing of ordinary shares of US$1mln, for the issue price of 30p. The new investor provided secured commitment to subscribe for US$10 mln , while the Board and senior management of the company are interested to participate in the Placing for approximately US$1mln.
The fund raising in the amount of US$11 mln completes the short-term funding plans of Chaarat Gold. To facilitate the introduction of long-term investing partners, the Board of the BVI company will consider additional subscriptions from current shareholders and new investors totaling up to US$5 mln. General Meeting for shareholders is expected to be held on or about 26 April 2019.
The capital raising will provide Chaarat with growth capital of approximately US$41 mln, at the same time it will assist in widening company’s shareholder base, which has already risen after company’s acquisition of the Kapan mine in Armenia, which transformed the BVI company from developer to producer. One of the key strategic objectives is to minimise dilution to shareholders.