Newcore Gold (TSX.V: NCAU)

Announced it has entered into an agreement with a syndicate of underwriters led by Stifel GMP pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 16,700,000 common shares of the Company at a price of  $0.30 per share, to raise $5,010,000 gross.  […] 

 

.

Newcore Gold	TSX.V: NCAU
Stage	Exploration
Metals	Gold
Market cap	C$36 m   @ 30 c
Location	Enchi, Ghana, West Africa

 

.

 

.THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES .

 

.

Comment

This raise, at a 50% discount to where the price was very recently, perfectly highlights my recent comments about the danger of holding a junior explorer that requires funding when markets are in decline.

Nothing has changed from a few months ago, apart from sentiment, and that has caused this dilution to occur.

Anyone like myself holding from the 60c range has taken a  haircut here, so one hopes that the gold price will soon rise back up, and take the NCAU share price with it.

I may be tempted to buy a few more at this level to lower my average price, as I see nothing wrong with the project, but I am keeping some powder dry for when the market shows some strength.

Market sentiment is why the prices have fallen so far, and surely it must reverse soon as there’s so many undervalued junior miners at current levels.

How long is it to St. Ledger day?

.

Newcore Gold Announces a C$5 Million Bought Deal Financing

 

.

Vancouver, BC – Newcore Gold Ltd.  (TSX-V: NCAU, OTCQX: NCAUF) (“Newcore” or the “Company”) is pleased to announce it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by Stifel GMP pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 16,700,000 common shares of the Company (the “Common Shares”) at a price of  $0.30 per Common Share (the “Offering Price”) for aggregate gross proceeds to the Company of  $5,010,000 (the “Offering”).

The Company intends to use the net proceeds from the Offering to fund exploration and development expenditures at the Company’s Enchi Gold Project in Ghana as well as for working capital and general corporate purposes.

The Common Shares will be offered by way of a prospectus supplement in all provinces and territories of Canada, except Québec pursuant to National Instrument 44-102 – Shelf Distributions. The Shares will also be offered and sold in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and other jurisdictions outside of Canada on an exempt basis.

=======

.If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com

=======

.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

.

Disclosure

At the time of writing the author holds  shares in Newcore Gold. These were bought in the market at the prevailing price on the days of purchase.

.

.