Cabral Gold Announces $2M Financing
Vancouver, May 20, 2020 - Cabral Gold Inc. (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company") is pleased to announce the terms of a non-brokered private placement of up to 16,000,000 common shares ("Shares") at a price of $0.125 per Share for gross proceeds of up to $2,000,000 (the "Private Placement"). Closing is expected by 19th June 2020.
The Company intends to use the net proceeds from the Private Placement to drill recently identified high-grade gold targets at the Cuiú Cuiú gold project located in northern Brazil, and for general corporate and working capital purposes.
The securities issued pursuant to the Private Placement will be subject to a four-month hold period from the closing date. Completion of the Private Placement and the payment of any finder's fees will be subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Cabral may pay a cash finder's fee equivalent up to 7% of the gross proceeds of the Private Placement.
Recap of Recent Results
During the last 6 months, Cabral has announced the following drill results and identified a number of new targets at the Cuiú Cuiú gold project as follows;
- Drill results from the existing MG gold deposit and in particular hole 199-19 which returned 16.9m @ 9.6 g/t gold from 82.6m including 7.6m @ 18.5 g/t gold from 91.9m (see press release dated 7th November 2019)
- Additional drill results from the MG deposit including 14.2m @ 6.7 g/t gold from 109.4m depth including 5.6m @ 13.0 g/t gold from 109.4m and 0.9m @ 22.4 g/t gold from 121.3m depth in drill hole 202-19 confirming the along strike and down dip continuity of high-grade mineralization (see press release dated 20th January 2020)
- Additional drill results from a second zone of high-grade gold mineralization at MG including 7.8m @ 4.7 g/t gold including 0.6m @ 48.5 g/t gold in drill hole 201-19 (see press release dated 20th January 2020)
- Drill results from high grade portions of the Central deposit including 17.3m @ 2.1 g/t gold including 6.0m @ 4.9 g/t gold from 130.5m in hole 204-19 and 39.6m @ 1.3 g/t gold from 126.6m including 3.6m @ 6.0 g/t gold and 2m @ 5.0 g/t gold in hole 205-19 and 38.5m @ 1.5 g/t gold including 1.5m @ 6.0 g/t and 1.6m @ 8.6 g/t gold in hole 206-19 (see press release dated 5th February 2020)
- The discovery of high-grade gold mineralization on surface in a brand new zone called Alonso located 3km SE of the MG gold deposit where 24 rock samples collected from surface boulders returned gold values ranging from 11.6 to 200.3 g/t gold and average 91.7 g/t gold (see press release dated February 11th 2020)
- The identification of a second new zone of high-grade gold mineralization on surface at the Medusa Target located 4km east of Alonso. Two areas of quartz-sulphide boulders on surface returned values of 1.1 to 82.1g/t gold (13 samples averaging 26.0g/t gold) and 5.2 to 50.1 g/t gold (6 samples averaging 21.8g/t gold) (see press release dated 22nd April 2020)
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:
"Alan Carter"
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660
Neither the TSX Venture Exchange nor the 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.
Forward-looking Statements
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.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/56192
