en.Weodoany.com Report on Mar 27th, Cabral Gold Inc. has announced an underwritten deal agreement with Stifel Canada for the issuance of 21,055,000 common shares at a price of C$0.95 per share, for total gross proceeds of approximately C$20 million. The company has also granted the underwriters an over-allotment option to purchase up to an additional 3,158,250 shares, which, if exercised in full, would increase the total gross proceeds to approximately C$23 million. This financing is intended to support the company's exploration and development activities in the Cuiú Cuiú gold district in Brazil.
The net proceeds will be used primarily for the exploration and development of mineral assets and for general working capital purposes. The company plans to add drills in the Cuiú Cuiú area, focusing on drilling at the Jerimum Cima discovery and other gold targets to accelerate the growth of indicated and inferred resources, particularly in primary hard rock material. These resources are expected to form the basis for the second phase of development at the Cuiú Cuiú project.
Alan Carter, President and CEO of Cabral Gold, commented on the financing and exploration plans: "Following the recent positive drill results from the Jerimum Cima target, including 9.5 meters grading 87.4 g/t gold, the company has decided to expand its exploration drilling program in the Cuiú Cuiú district. This underwritten deal financing will allow us to add more drills to the current exploration program to drill the Jerimum Cima discovery as well as several other gold discoveries within the district. The objective of the drilling program is to accelerate the growth of indicated and inferred resources in the area, particularly in primary hard rock material, which is expected to form the basis for the second phase of development at Cuiú Cuiú. The Phase 1 oxide gold project remains on schedule and on budget, with commercial gold production expected in Q4 2026."
The offering is expected to close on or about April 2, 2026, subject to the receipt of all necessary approvals. The common shares will be offered by way of a prospectus supplement in all provinces and territories of Canada except Quebec, on a private placement basis in the United States, and in other jurisdictions. Relevant documents will be available on the SEDAR+ platform. The company continues to advance its Phase 1 oxide gold project, targeting commercial production in Q4 2026.
