Vancouver, British Columbia--(Newsfile Corp. - June 1, 2020) - Cabral Gold Inc. (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company") has increased the size of its previously announced private placement (the "Private Placement") from $2 million to up to $4 million due to increased demand.
Pursuant to the Private Placement, the Company will now issue up to 32 million common shares at a price of $0.125 per share. A portion of the Private Placement may be brokered.
Net proceeds from the Private Placement will be used for drilling high-grade gold targets and regional exploration at the Cuiú Cuiú gold project and for general corporate and working capital purposes.
In connection with the Private Placement, the Company may pay a finder's fee in cash equal to up to 7% of the gross proceeds of the Private Placement or common shares equal in number to up to 9% of the shares sold under the Private Placement to subscribers introduced to the Company by the finder.
Filing of audited 2019 financial statements and MD&A
Other than as disclosed in the audited financial statements in respect of the year ended December 31, 2019 and the management discussion and analysis covering the same period (both of which were filed on SEDAR on May 26, 2020), the Company's news release dated May 20, 2020 and the current news release, there have been no material developments since the Company's April 22, 2020 news release announcing the delay in the filing of its financial reports due to the COVID-19 outbreak.
About Cabral Gold Inc.
The Company is a junior resource Company and is engaged in the identification, exploration and development of projects in Brazil. The Company owns the Cuiú Cuiú gold project which currently contains Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 oz and is located in the Tapajós Region within the state of Pará in northern Brazil.
The Tapajós Gold Province is the site of the largest gold rush in Brazil's history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest garimpo in the Tapajós and produced an estimated 2M ounces of placer gold historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604 676 5660
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will", "expected" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and the private placement and use of proceeds. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
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