Giyani launches C$300 000 private placement

TORONTO (miningweekly.com) – Oakville, Ontario-based Giyani Gold has launched a C$300 000 non-brokered private placement financing of up to three-million common shares at a price of C$0.10 apiece, for total gross proceeds of up to C$300 000, the company announced Friday.

The TSX-V- and JSE-listed explorer advised that, pending regulatory and exchange approvals, the placement was expected to close on July 15.

The net proceeds would be used for general working capital purposes.

Giyani also reported that, subject to exchange approval, it had granted 1.85-million options to directors and consultants of the company, with a strike price of C$0.10 a share. These new options mostly replaced expired options.

Giyani’s Toronto-quoted stock traded 37.5% higher at C$0.11 apiece early on Friday morning. This aligned with other major Canada-listed gold producers' performance in the wake of the historic British referendum result, which prompted significant investor demand for gold as a safe haven for wealth.

Gold spot prices in New York jumped to a new two-year high of $1 358.54/oz late on Thursday night, when the first results tentatively pointed to a ‘leave’ result in the ‘Brexit’ referendum.

Giyani is focused on developing its Rock Island gold project, in South Africa, and ongoing exploration for gold at its properties in Northern Ontario, Canada. However, the Rock Island property and the Iron Lake gold project, in Ontario, had been written down to nil and there were no exploration and evaluation activities on these properties during the three months ended March 31.

The company also held a 100% interest in the Kerrs gold property, in the Larder Lake mining division of Ontario.