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Continental Gold announces $175 million in financing from Newmont, Triple Flag, stock surges

Continental’s Buriticá gold project encompasses an aggregate area of 75,023 hectares in the Antioquia Department in north-western Colombia. (Image courtesy of Continental Gold.)

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 Buriticá 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%.