Continental Gold's (TSX:CNL; OTCQX:CGOOF) shares surged over 11% on Friday, the same day the Toronto- based miner announced that it obtained a $175 million financing package backed by Newmont and Triple Flag Mining Finance.
The package includes a $50 million debenture from Newmont, and a $100 million gold and silver stream from Triple Flag . Each of the debentures will be convertible at the holder's option into common shares of the company at a conversion price of C$3.00 per share, representing a 27.1% premium to the 30-day volume weighted average share price on the TSX. Assuming full conversion of the debenture issued to Newmont only, Newmont's ownership in Continental would increase to approximately 28%.
Continental Gold is an advanced-stage exploration and development company with a portfolio of 100%-owned gold projects in Colombia.
Proceeds from the financing package will be used for general and working capital purposes and toward construction, commissioning and start-up of the Buritic?? project in Antioquia, Colombia, the company said in a press release.
Continental's shares were trading at C$2.89 on the TSX Friday afternoon, up 11.15%.