TORONTO (miningweekly.com) – Canadian explorer Giyani Gold on Wednesday reported that a private placement with California-based Lambert Private Equity had secured C$25-million to better equip the company to act on potential merger and acquisition opportunities.

The Oakville, Ontario-based firm, which is listed on the TSX-V, the JSE and the NSX, said under the agreement, Lambert would commit up to C$10-million over a period of three years.

Further, at Giyani’s discretion, at any time over the next five years, Lambert's commitment amount may be increased to C$25-million with all other terms and conditions of the agreement remaining unchanged, with no added fees or compensation due.

“The funding to be provided under our agreement with Lambert ensures that we have the stability to continue evaluating growth opportunities and the financial strength to act on those that are most promising. Our relationship with Lambert will also protect and benefit our shareholders by providing dilution control and the flexibility for near-market pricing on future financing,” Giyani executive chairperson Duane Parnham said.

The financing would take place through a series of private placements priced at 90% of the lowest daily volume-weighted average price of the common shares of Giyani on the TSX-V during the previous 15 trading days following Giyani’s notice of intention, or the lowest price permitted by TSX-V policies.

Each unit would be comprised of one share and one share purchase warrant, which would entitle the holder to acquire one additional share for a period of five years from the date of issue at the lowest price permitted by the policies of the TSX-V.

The proceeds from each private placement would be used for general corporate and working capital purposes and might be used to evaluate and pursue strategic acquisitions.

Currently, the company’s primary focus was the development of the Rock Island gold project, in Limpopo, and ongoing exploration for gold at its Northern Ontario project, in Canada.

Giyani’s TSX-V-listed stock on Wednesday morning fell 9.09% to C$0.30 apiece.