Reverse-circulation drilling underway on Sanu Gold’s Daina gold exploration permit in Guinea, West Africa. Credit: Sanu Gold
Sanu Gold (CSE: SANU) saw its stock price surge to its highest in two years on Tuesday after the West Africa-focused junior announced a private placement backed by Montage Gold (TSXV: MAU) and the Lundin Family.
The placement would see Sanu issue approximately 42.85 million common shares priced at C$0.28 each for total proceeds of C$12 million. The financing was initially set at C$10 million but upsized later in the day.
Sanu Gold’s shares gained 16% at C$0.36 apiece during the afternoon trading, after hitting a 52-week high of C$0.38 earlier. Its market capitalization is estimated at nearly C$140 million ($98 million).
Both Montage and Lundin have indicated their intention to participate in the placement and maintain their respective 19.9% and 10% interests. The two parties…
