Jazz Resources (TSXV:JZR) announces a non-brokered private placement to raise gross proceeds of up to $1 million from the placement of up to 1,250,000 units priced at $0.80 per unit. The company plans to use the net proceeds to advance the development on its Vila Nova gold project in Brazil and for general working capital purposes.
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Jazz Resources (TSXV:JZR) has announced a non-brokered private placement.
The company is looking to raise gross proceeds of up to $1 million from the placement of up to 1,250,000 units priced at $0.80 per unit.
The units consist of 1 share and 1 warrant, with each warrant exercisable at $1.20 for 12 months.
The shares are currently trading at $0.77.
The company plans to use the net proceeds to advance the development on its Vila Nova gold project and for general working capital purposes.
The 426-hectare Vila Nova Project is located in the Amapá State in Brazil, approximately 80 km west of the city of Macapá.
The property can be reached by vehicle at any time of year by proceeding north along highway BR-210 from the city of Macapá for 145 kilometres before accessing a good condition hardtop road from the village of Cupixi for approximately 35 kilometres.
The company recently completed assembly of an 800 tonne per day bulk sampling gravimetric mill which is currently being powered up with electricity and water with start-up and testing procedures beginning this month before the Mill becomes operational.
All necessary permits in place to bulk sample up to 600,000 tonnes per year.
Assay results estimate 9 million tonnes of gold tailings with grades averaging 2.7 g/t gold for projected contained gold content of over 700,000 ounces.
Management is forecasting near term cash-flow from the bulk sample in June with revenue expected as early as July.
With an estimated production cost of US$500 per ounce, the net gold revenues will be split between the partners, with 50% Jazz Resources, 35% Eco Mining, the operator, and 15% to a local Co-Op.
In March, the company raised gross proceeds of approximately $1 million from the exercise of 2.9 million warrants that were exercisable at $0.35.
For more information, please visit the company’s website at www.JazzResources.ca, contact Rob Klenk, CEO, by email at rob@JazzResources.ca.
