JSE- and NYSE-listed Gold Fields has increased its interest in Chakana Copper by participating in the Canadian exploration company’s private placement.
Gold Fields Nazca Holdings on November 3 purchased 8 555 643 units of Chakana, which owns the Soledad copper/gold/silver project in Peru.
Each unit consisted of one common share and one common share purchase warrant at C$0.04 per unit for total gross proceeds of C$342 225.76.
The warrants are exercisable at C$0.06 a share for a period of 24 months.
The transaction increased Gold Fields’ ownership in Chakana from 17.44% to 19.9%.
Chakana previously announced a private placement of 20 541 495 units at C$0.04 each for gross proceeds of C$821 659.84.
Besides Gold Fields, the company’s directors and officers purchased an aggregate of 3 185 852 units in the first tranche of the placement for proceeds of C$127 434.09.
“We are excited to see such strong support in this financing from Gold Fields and other investors in this first tranche. Completing the second tranche will allow us to continue our aggressive exploration programme at our Soledad copper/gold/silver discovery in Peru,” said president and CEO David Kelley.
Chakana plans to use the net proceeds of the placement for 2 400 m of exploration drilling and advancement of the Soledad project.
In June, the company received approval to drill several targets on the southern-half of the Soledad project, including the Mega-Gold porphyry target, the La Joya high-sulphidation epithermal target, and additional high-grade outcropping tourmaline breccia pipes.
A small portion of the proceeds of the private placement will be used for general working capital and administrative purposes, including salaries payable to non-arms-length parties.