07:48 AM EST, 12/30/2024 (MT Newswires) -- Belo Sun Mining ( BSXGF ) on Monday said La Mancha Investments, a unit of La Mancha Resource Fund, will hold about 17% of the company's outstanding common shares upon completion of La Mancha's offering.

La Mancha's acquisition includes the purchase of about 15% of the common shares from Sun Valley Gold and the concurrent subscription by a non-brokered private placement for gross proceeds to Belo Sun of about $1.2 million.

Belo Sun intends to use proceeds of the offering for general working capital and corporate purposes.

"We are very pleased to welcome La Mancha as a shareholder and look forward to working with them to advance our Volta Grande Project (PVG)," said Belo Sun Chief Executive Ayesha Hira.

"We view PVG as one of the most technically promising gold projects in the region and believe its successful development hinges on meaningful environmental and social programs and close collaboration with local communities and stakeholders. Our investment reflects our confidence in Belo Sun's ability to advance the project responsibly," said La Mancha Resource Capital Chief Investment Officer Vincent Benoit.

Shares of the company closed down $0.005 or 10%, to $0.045 on Friday on the Toronto Stock Exchange.