Cassiar Gold raises $6.8 million for B.C. project
Cassiar Gold Corp. [GLDC-TSXV, CGLCF-OTCQX] has raised $6.8 million from an upsized non-brokered private placement financing and said it will use the proceeds to fund ongoing and future exploration and drill programs at its flagship Cassiar Gold Project in northern British Columbia.
Under the terms of the offering, Cassiar issued 10.8 million units priced at 25 cents each, 1.76 million flow-through units priced at 35 cents per unit, 4.0 million charity flow-through units priced at 37 cents each and 5.25 million charity flow-through units priced at $0.3825 per unit.
Each unit consists of one common share of the company and one common share purchase warrant. Each flow-through unit and charity flow-through unit consists of one common share and one warrant, each of which will qualify as a flow-through share under the Income Tax Act (Canada). Each warrant can be used to acquire one common share for 50 cents for two years after the date of closing
Cassiar is a British Columbia-focused exploration company. It holds a 100% interest in its flagship Cassiar gold project, which spans 590 square kilometres and consists of two main project areas known as Cassiar North and Cassiar South.
Cassiar North holds a NI-43-101-compliant inferred resource estimate of 1.4 million ounces, grading 1.14 g/t (cutoff grade 0.7 g/t) and known as the Taurus Deposit.
Cassiar South hosts numerous gold showings, historical workings and exploration projects over a 15-kilometre long and up to 10-kilometre-wide trend. Historical underground mines in the Cassiar South area have yielded over 315,000 ounces of gold at grades of between 10 and 25 g/t gold, underscoring the high potential for further discovery of bonanza-grade orogenic gold veins.
The area is accessible via Highway 37, which bisects the property, and access roads throughout the property. The project has a 300 tonne-per-day mill for future operations and a permanent camp.
The company also holds a 100% interest in the Sheep Creek gold camp in Salmo, B.C. The Sheep Creek gold district ranks as the third largest past producing orogenic gold district in B.C, with historical production of 742,000 ounces of gold at an average grade of 14.7 g/t gold from 1900 to 1951. Minimal exploration work has been conducted since the 1950s, Cassiar said in a press release.
Cassiar Gold shares advanced on the news, rising 1.9% or $0.005 to 27 cents. The shares currently trade in a 52-week range of 51 cents and 20.5 cents.
Based on the success of the 2023 field campaign, through the use of integrated exploration methods, the company said it has identified several new exploration targets and better placed known targets into a more refined geological and geophysical context.
Drilling in 2023 focused on the Taurus Deposit in the Cassiar North area. The Taurus Deposit hosts a substantial near-surface bulk-tonnage and pit-constrained inferred resource of 1.4 million ounces, grading 1.14 g/t gold. The company has said the deposit remains open in all directions as well as at depth.