1911 Gold raising $7 million for Manitoba projects
1911 Gold Corp. [AUMB-TSXV] said it has increased the size of a previously announced private placement offering to $7 million and will used the proceeds to fund exploration at projects in Manitoba.
The increase from the original $5 million target comes from the sale of 17.3 million common shares that qualify as flow-through shares. It said the flow-through shares will be issued in two tranches. One will consist of up to 6.0 million flow-through shares priced at 56 cents per share, sold to residents of Manitoba for aggregate proceeds of $3.36 million.
The second tranche will consist of 11.4 million flow-through shares at 32 cents each, generating aggregate proceeds of $3.64 million.
The company has granted the agent the option, exercisable in whole or in part at any time up to 48 hours prior to closing to increase the size of the offering through the issuance of up to 3.12 million National flow-through shares for additional proceeds of $1 million.
It said gross proceeds from the sale of the flow-through shares will be used to incur eligible exploration expenses as defined in the Income Tax Act [Canada] related to the company’s projects in Manitoba.
The offering is expected to close around December 29, 2021.
1911 is a junior explorer that holds a highly prospective, consolidated land package covering 58,000 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba. It also owns the True North mine and mill complex in Bissett, Manitoba, where it is reprocessing historic tailings on a seasonal basis.
1911 believes its land package is a prime exploration opportunity with potential to develop a mining district centred on the True North complex. The company also owns the Apex project near Snow Lake, Manitoba and the Tully and Denton-Keefer projects near Timmins, Ontario. It has said it intends to focus on both organic growth opportunities and accretive acquisition opportunities in North America.
On December 9, 2021, 1911 shares closed at 31.5 cents, and currently trade in a 52-week range of 72 cents and 26 cents, leaving the company with a market cap of $14.5 million based on 47.16 million shares outstanding.
1911 recently released an exploration update for its Apex Gold property in the Snow Lake area saying that assay values of up to 1,240 g/t gold were obtained from grab samples of quartz veins and altered wallrock associated with fault systems cutting the Rex Lake Pluton.
High-grade gold is associated with zones of sulphide enrichment, containing up to 40% disseminated sulphide within and peripheral to fault-systems in the Rex Lake Pluton.