Wednesday, 04 May 2011 15:01Tom Brennan
ASX-listed Brighton Mining Group Ltd will receive up to US$5.8 million in equity funding from an American investor to continue its search for gold in Mondulkiri province, the company has said.
The funds will be used for the company’s planned activities in its Antrong project, an area Brighton claims has the potential to contain multimillion-ounce gold deposits.
“The increased funding capacity reflects the aggressive plans by the company to accelerate exploration and development of its highly regarded and prospective Antrong concession in Cambodia,” Brighton said.
According to a statement released on Monday, New York-based SpringTree Special Opportunities Fund will buy between about $81,000 and $163,000 worth of Brighton shares approximately every month over a period of 36 months.
As an additional source of funding, SpringTree will purchase a $136,000 convertible security from Brighton at the end of June, the statement said.
SpringTree, which is managed by SpringTree Global Investors, invests in small- and mid-cap public companies and has made similar equity-related deals with other ASX-listed companies according to Brighton.
Brighton said it had secured the financing “at a highly competitive rate”, which allowed for growth and minimised dilution of its capital.
SpringTree’s near-monthly share purchases will provide Brighton steady access to capital to push forward with its growth and development plans, the company said.