Inter-Citic Minerals will use Can$21 million raised in a non-brokered private placement to advance the Dachang Gold Project. The funds will help to complete a Chinese Feasibility Study this year as well as all other advanced engineering studies required under Chinese regulations in order to complete the mine permitting process.
Funds will also help Inter-Citic continue regional exploration for further resource expansion as well as assist for general corporate purposes.
The company’s president and CEO James Moore says the financing will take place in two tranches. The first for gross proceeds of up to $12.6 million will be completed this month and the second tranche for gross proceeds of up to $8.4 million will be completed in July. Subscribers to the transaction are primarily investors resident in Hong Kong and China.
Toronto-based Inter-Citic Minerals is an exploration and development company advancing its Dachang Project.
The two key exploration licenses that cover the Dachang Maqin Zone and adjoining resource areas have been extended by the Chinese Central Government’s Ministry of Land and Resources to November 2013 when they will again be eligible for further extension.
The 279sqkm Dachang project area comprises five separate exploration licence areas. These licences are granted for an initial period of three years and can be renewed/extended every two years thereafter providing minimum exploration expenditures are met.