Cabral Gold Closes C$20 Million Bought Deal Financing

Company Overview

Cabral Gold Inc. [TSXV: CBR | OTCQX: CBGZF] is a Vancouver-based junior resource company focused on the identification, exploration, and development of gold properties in Brazil. The company holds a 100% interest in the Cuiú Cuiú gold district in the Tapajós Region of the state of Pará, northern Brazil. Three main gold deposits have been defined at Cuiú Cuiú. NI 43-101 compliant indicated resources totaling 450,200 ounces in fresh basement material and 216,182 ounces in oxide material. Inferred resources stand at 455,100 ounces in fresh basement material and 70,569 ounces in oxide material. The Tapajós Gold Province is the site of the largest gold rush in Brazil's history, estimated to have produced 30 to 50 million ounces of placer gold between 1978 and 1995, with Cuiú Cuiú itself historically producing an estimated 2 million ounces of placer gold.

Offering Details & Use of Proceeds

Cabral Gold has closed its announced bought deal offering of 21,055,000 common shares at C$0.95 per share, for gross proceeds of C$20,002,250. The offering was completed pursuant to an underwriting agreement among the company, Stifel Nicolaus Canada Inc. as sole bookrunner and lead underwriter, and Paradigm Capital Inc. as underwriter.

A cash commission of C$1,200,135, representing 6.0% of the gross proceeds, was paid to the underwriters in consideration for their services. No new insiders or control persons, as defined in the policies of the TSX Venture Exchange, were created at the closing of the offering.

The net proceeds will be used for the exploration and development of the company's mineral properties and for general working capital purposes. No detailed allocation of proceeds was provided.

Distribution & Eligibility

The offering was distributed across Canada, excluding Quebec, and to qualified institutional investors in the United States under Rule 144A, as well as select international jurisdictions where no additional filings were required. The prospectus supplement was filed under the company's base shelf prospectus.

Next Steps

With the financing now complete, Cabral Gold is positioned to advance exploration and development at its mineral properties. The underwriters retain a 30-day over-allotment option which has not been exercised as of the date of the news release.

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