TORONTO (miningweekly.com) – Guyana-focused gold producer Goldsource Mines will use the proceeds from exercised warrants for working capital and to accelerate planned production expansion at its Eagle Mountain gold mine, where it last month started first production.
The TSX-listed company on Monday advised that 5.13-million warrants issued in February 2014 and December 2014 – expiring February 28, 2017 and December 12, 2017 respectively – were exercised early for gross proceeds of C$1.24-million.
Of the warrants exercised, a total of 3.53-million were exercised by insiders of the company.
"The funds will help to complete the commissioning phase for scheduled commercial production in the second quarter and accelerate planned production with the inclusion of a second operating shift. The company currently has C$1.4-million cash and has commenced generating revenue from operations,” stated president Yannis Tsitos.
Goldsource planned to update the market on operations and the commissioning of Eagle Mountain mine on Wednesday.