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Guyana Goldfields enters into C$5.5m private placement with IFC

2nd March 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Guyana Goldfields, which is developing the Aurora gold project, in Guyana, on Friday said it has entered into a C$5.5-million private placement agreement with the International Finance Corporation (IFC) of the World Bank Group.

Under the agreement, the IFC had subscribed for 1.63-million common shares of the company, at a price of C$3.40 a common share, for total gross proceeds of C$5.55-million.

"We are pleased to, once again, see IFC's support and confidence in the Aurora Gold Project. Our six year partnership has helped us establish an integrated environmental, health, safety, and social management system, in line with IFC standards and international best practices,” Guyana Goldfields CEO Patrick Sheridan said in a statement.

Upon closing of the offering, the IFC would hold a total of 6.91-million common shares or 5.55% of the company.

Guyana Goldfields said the net proceeds of the offering would be used to fund the development of the Aurora project, for exploration expenditures and for general corporate purposes.

The company in February closed a $100-million bought deal offering for which it has issued 29.42-million shares at a price of C$3.40 a share.

Edited by Creamer Media Reporter

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