Gold in euros and pounds reached fresh all-time highs on Monday as the yellow metal advanced against most major fiat currencies. Escalating sovereign debt fears, particularly in Greece and Italy, drove safe haven buying in gold bullion and other securities tied to the yellow metal.
The euro-denominated price of gold hit a new record high of €1,110.48, while gold in British pounds reached a fresh high of £979.89 per ounce. On a year-to-date basis, gold in euros and pounds has risen 4.6% and 11.4%, respectively.
In U.S. dollar-terms, gold remains 1.8% below its $1,577.40 per ounce all-time high, set on May 2 of this year.
Spanish Mountain Gold Raises C$15 Million
Spanish Mountain Gold (SPA.TSXV) announced a C$15 million private placement offering comprised of up to 25 million units at C$0.60. Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to acquire an additional common share of the Company at a price of C$0.70 per share for a period of two years. The offering is expected to close by July 7, 2011. Full Spanish Mountain Gold News Release.
Brian Groves, President and CEO:
“The exploration drilling was successful in demonstrating that the potential exists to expand the areas of mineralization to the east and west. Additional drilling will be done in 2011 to better define the continuity of mineralization in these areas.”
HIGHLIGHTS:
- The proceeds from the offering will be used to advance the development of the Company's Spanish Mountain gold project in Canada, to explore the contiguous Cedar Creek claims and for general corporate purposes.
- All of the securities issued in connection with the offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
- Pursuant to the offering, Mr. Ian Watson, a director of the Company, is expected to acquire 5 million of the units for approximately C$3 million. This represents approximately 20% of the offering and 3.19% of the issued and outstanding shares after the completion of the private placement. In addition, certain directors and officers of the Company are expected to acquire an aggregate of 800,000 units.
Paul Dietrich, Foxhall Capital Management:
“This Canadian gold mining development company has a market cap of about $74 million and has, by my calculations, some of the cheapest in-the-ground gold in the world that is located in a politically stable country.”
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INTERACTIVE SPA NEWS RELEASES
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