California Gold Corp. issued a financial and operational update on the company’s activities, including recent financing activity and a potential acquisition target.

California Gold Corp. reported that the company has received the proceeds of a private placement offering sold to a select group of accredited institutional investors. The company sold 58.48 million units at a price of $0.025 per unit in two separate tranches, yielding approximately $1.46 million in proceeds.

California Gold Corp. said that the 36.48 million units consisted of one share of common stock and a warrant to purchase 0.5 shares of common stock at a price of $0.125 per unit. The other 22 million units consisted of one share of Series A convertible Preferred stock and a warrant to purchase 0.5 shares of common stock at a price of $0.125 per unit. The warrants are exercisable for up to eighteen months after the offering closes.

California Gold Corp. said that part of the proceeds of the offering will be used to finance the purchase of an 80% interest in a mining property located in Sonora, Mexico. The AuroTellurio project is prospective for gold, silver and tellurium and is being sold by the Mexivada Mining Corp.