Brigadier Gold (BRG.V) intends to complete a private placement to raise approximately C$1M by issuing 5 million units at C$0.20. Each unit will consist of one common share as well as a full warrant with an exercise price of C$0.30, valid for a period of one year.
The proceeds of the financing will be used to fund the ongoing drill program on the Picachos gold-silver project in Sinaloa where Brigadier plans to add a second drill rig as the company will initiate a Phase 2 drill program. While CEO Sundher is correct when he says ‘[the company] has only started to evaluate the potential’ of Picachos, the recent batch of drill results was a bit underwhelming. The headline result used for the February 17 press release was absolutely excellent with 12.6 g/t gold and 78 g/t and 4.5% copper, but the mineralized intercept was still quite narrow at just 0.7 meters (true width). Pretty much all of the other holes were quite useless.
Hopefully the fresh cash inflow and adding the second rig will help to figure out the mineralization at Picachos.
Disclosure: The author no longer has a position in Brigadier Gold. Please read our disclaimer.