Brazauro lines up $9.5M financing

Vancouver — Brazilian gold hunter Brazauro Resources (BZO-V) is replenishing its treasury with a planned $9.5-million private placement.

The financing, arranged through London-based Ocean Equities, is comprised of 5 million units priced at $1.90 apiece. Each unit comprises a share plus a half-warrant, with each full warrant exercisable at $3.80 for one year.

Funds are earmarked for further drilling and exploration on the Tocantinzinho and Mamoal projects in north-central Brazil’s Tapajas region.

Initial drill results from the 3,000-metre Tocantinzinho Phase 3 program returned wide gold intercepts. Hole 05-21 intersected 234 metres (from 80 metres depth) grading 1.3 grams gold per tonne, including 23 metres of 3.3 grams gold with a 2-metre interval of 27 grams gold near the bottom of the hole, where mineralization remains open at depth.

Hole 22 cut 226 metres averaging 1.5 grams gold, including higher-grade sections of 83 and 47 metres grading 2.3 and 2.2 grams gold, respectively. A 2.5-metre interval averaging 28 grams gold was encountered at 70 metres depth.

Brazauro’s drilling is aimed at proving a potential open-pittable gold deposit at Tocantinzinho. Mineralization is disseminated throughout the coarse-grained and fractured granite with a stockwork of quartz-chlorite-sulphide stringers. The large Tocantinzinho shear zone, associated with most of the major gold mineralization in the region, runs through the company’s project area.

The 283-sq.-km property witnessed an alluvial gold rush in the 1960s and 70s. A number of large, hand-dug open pits cover sections of the project where artisanal miners (garimpeiros) exploited highly weathered saprolites and laterites beneath the eluvial gold deposits.

Brazauro, formerly named Jaguar Resources, posts a $91-million market capitalization based on its 45.6 million shares outstanding and recent $2.00 per share trading level.


Be the first to comment on "Brazauro lines up $9.5M financing"

Leave a comment

Your email address will not be published.


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.