Green Heart Gold Company (GHRT-TSXV, GHRTF-OTCQX) It intends to proceed with non-brokered private placement financing that is expected to generate gross proceeds of up to $50 million.
Greenheart is an exploration company led by former executives and members of Reunion Gold’s exploration group, a team most recently known for discovering and locating the multi-million-ounce Oko West deposit in Guyana. The company has assembled a portfolio of early-stage exploration projects in Guyana and Suriname that are expected to contain indigenous gold deposits.
The company said the proceeds from the private placement of up to 50 million shares at $1 per share are earmarked for exploration work at its projects in Suriname and Guyana, potential new acquisitions in the Guyana Shield, and exploration work in the region.
On Friday, Greenheart Gold shares rose 4.04%, or $0.04, to $1.03. Shares are trading in a 52-week range of $1.63 and 56 cents.
The company said that it is pleased to announce that La Mancha Investments Sarl, which owns approximately 4.62% of the company’s outstanding common shares, intends to participate in the offering and increase its ownership to approximately 19.9%. In addition, G Mining Projects Company (municipality-TSXV, gmnf-OTCQB), through its G Mining Guyana Corp unit, which owns approximately 10.5% of the company’s outstanding shares, has indicated its intention to exercise its right to participate in the offering and acquire the number of shares required to maintain its ownership position.
The company said that the allocation of the number of shares that each of them will acquire will depend on the participation of other investors in the offering.
Greenheart said it expects to enter into an investor rights agreement with La Mancha similar in form and substance to the investor rights agreement currently in place with G Mining Guyana. It will provide La Mancha with the right to nominate one member to the Board of Directors and to retain its ownership interest in the event of future financing upon issuance of securities. La Mancha will also comply with freeze restrictions and restrictions on the transfer or sale of common shares held by La Mancha.
G Mining Ventures recently said it has concluded a definitive deal that will see the company acquire all outstanding shares in G2 Goldfields Company (GTWO-TSX, GUYGF-OTCQX) pursuant to a court-approved plan of arrangement valued at approximately $3.0 billion
The deal aims to achieve regional consolidation by combining G Mining’s Oko West gold project and G2’s Oko-Ghanie project into a single Tier 1 entity, known as the Oko Project. It also combines the average mine gold production life expectancy of approximately 350,000 ounces from G Mining’s Oko West project and 228,000 ounces from G2’s Oko Ghanie project into a single operation, resulting in a 500,000 ounce average mine life expectancy.
