Crocodile Gold announces $18 million private placement financing through Sprott
Crocodile Gold Corp. (TSX:CRK) ("Crocodile Gold" or the "Company") today announced that it has agreed to complete an $18 million private placement (the "Placement") with Sprott Asset Management LP ("Sprott") on behalf of certain funds and managed accounts, Eric Sprott andLuxor Capital Group ("Luxor").
The Placement will consist of the issuance of up to 69,230,770 units (the "Units") at a price of $0.26per Unit. Each Unit will consist of one common share of Crocodile Gold and one-quarter of one common share purchase warrant ("Warrant") with each whole Warrant being exercisable to acquire one further common share of Crocodile at a price of $0.35 for a period of 12 months from closing and at a price of $0.40 for an additional period of 12 months beginning on the date of the first anniversary of the closing of the Placement.
The securities underlying the Units, including the common shares and Warrants issued on closing, as well as the common shares issuable upon due exercise of the Warrants, will all be subject to a four month statutory hold period commencing on the date of issuance. Closing of the Placement is expected to occur on or about February 28, 2014 and remains subject to a number of conditions, including without limitation, the entering into of definitive documentation with Sprott and Luxor and the receipt of regulatory approval, including approval of the TSX.
The Company intends to use the net proceeds to fund growth projects, such as the Big Hill Project, and regional exploration programs as well as for general working capital purposes. In connection with the Placement a finder's fee will be paid to Brant Securities Ltd.
About Crocodile Gold
Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also exploring and developing the Company's resources to ensure sustainable production in the future. For additional information, please visit our website www.crocgold.com.