1911 Gold upsizes private placement offering to $8.1 million
1911 Gold Corp. [AUMB-TSXV] says it has upsized a previously announced non-brokered private placement offering that is now expected to generate gross proceeds of up to $8.1 million.
The company had previously said it expected to raise $5.0 million with a strategic and lead investment from an unnamed high-growth mid-tier gold producer, whose production base does not include any assets in Canada.
It said proceeds will be used to finance exploration programs at the company’s flagship Rice Lake property in Manitoba, focusing on near-term target areas.
The offering is expected to consist of a combination of shares to be issued to residents in Manitoba at 23.9 cents per Manitoba flow-through share, and flow-through shares priced at 18.5 cents per share. Each of the flow-through shares and Manitoba flow-through shares will qualify as a flow-through share for the purposes of the Income Tax Act (Canada), and common shares priced at 14.5 cents each. Closing is expected to occur by December 23, 2024.
On Wednesday 1911 shares rose 3.1% or $0.005 to 16.5 cents. The shares trade in a 52-week range of 24 cents and $0.06.
1911’s portfolio includes 63,000 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba. It also owns the True North mine and mill complex at Bissett, Man. Other assets include the Apex gold project near Snow Lake, Man. And Denton-Keefer project near Timmins, Ont.
1911 recently said it is continuing to work towards the goal of restarting the high-grade True North gold mine, with current plans for this to occur in late 2026. However, the company said the time frame could be accelerated should market conditions and exploration results merit a faster ramp up.
In a press release on November 11, 2024, the company said an underground mineral resource estimate defined for the True North Gold Project is reported within mineral resource envelopes using a 2.25 g/t gold threshold.
It said the indicated resource stands at 3.5 million tonnes of grade 4.41 g/t gold, containing 499,000 ounces. On top of that is an inferred resource of 5.5 million tonnes of 3.65 g/t gold, containing 644,000 ounces of gold.
The mineral resource estimate highlights areas with exploration targets for resource expansion both down plunge and along strike to the modeled veins and within areas with historic drill holes that require drilling prior to including them in future resource estimates.
Meanwhile, 1911 said it has launched a surface drill program with target areas that include gold mineralization intersected in historic drill holes that are in new target areas along strike from the resource and within 400 metres from surface. The target areas also include new targets identified during the vein modelling that are proximal to gold-bearing shear zones within favourable host rocks.