Cerrado Gold (CERT.V) entered into an agreement for a strategic non-brokered private placement financing with Canadian billionaire investor Eric Sprott for C$10 million, it said in a statement on Monday.
The offering will consist of 4-million units at C$2.50 apiece. Each unit will consist of one common share and one-half of one common share purchase warrant.
Each warrant will entitle the holder to buy a share for C$3.35 for a two-year period from the closing date. Proceeds will be used for working capital and general corporate needs.
Shares of the company closed down 1.6% to C$2.48 on Friday on the TSX Venture Exchange.