Triumph Gold set to begin drilling at Freegold Mountain, Yukon
Triumph Gold Corp. [TIG-TSXV, TIGCF-OTC, 8N61-FRA] has raised $1.92 million from a non-brokered private placement of 9.6 million units priced at 20 cents per unit. Proceeds from the private placement will be used for general working capital, as well as to continue working on the company’s Freegold Mountain project in the Yukon and Andalusite Peak project in British Columbia, and to explore silver projects in North America.
Under the terms of the private placement, each unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable to acquire one additional share at a price of 25 cents, exercisable for a term of three years from the date of issuance.
Triumph shares were unchanged Friday at 22 cents and trade in a 52-week range of 32 cents and 14 cents.
News of the financing comes after Triumph recently said a field crew has been dispatched to the Freegold Mountain property to execute a 1,900-metre diamond drill program targeting the newly discovered porphyry system in the Keirsten Zone. Phase 1.0 drilling is expected to start on March 27, subject to ground conditions.
“We are excited about the bull market we are entering in gold, silver and copper,’’ said Triumph Chairman John Anderson. “We know that our established resource base and property package presents highly leveraged exposure for our shareholders,’’ he said. “After a couple of challenging years in the exploration sector, we will be following up on expanding our resource base and hopefully new discoveries.’’
Triumph is a growth-oriented precious metals exploration and development company with a focus on creating value through the advancement of the Freegold Mountain Project, where the company has previously been working to build ounces at its existing deposits while evaluating a multitude of other targets on the property.
The company is led by an experienced team with a collective history of exploration to mining success, technical acumen, and capital raising ability. Anderson raised $35 million for Triumph Gold prior to joining the company’s board of directors. Anderson is a founding general partner in Aquastone Capital LLC, a New York-based gold fund.
Freegold Mountain Project is located in the Dawson Range gold-copper belt. The project covers a 200-kilometre-square road accessible portion of the Big Creek Fault, a structural system directly related to gold-rich porphyry, epithermal and related polymetallic vein and skarn mineralization.
The area also hosts Western Copper and Gold’s (WRN-TSX) Casino Project as well as Newmont Corp.’s [NGT-TSX, NEM-NYSE] Coffee deposit, and Rockhaven Resources Ltd.’s [RK-TSXV] Klaza gold project. Goldcorp, a Canadian company that subsequently merged with Newmont, gained exposure to the road-accessible Freegold project by taking a 19.9% stake in Triumph for $6.3 million.
Since Triumph acquired the property in 2006, more than 20 mineralized zones have been identified, and NI 43-101-compliant mineralized resources have been delineated in the Revenue (gold-silver-copper-molybdenum porphyry-related) deposit, the Nucleus (gold-silver-copper) deposit, and the Tinta Hill (gold-silver-copper-lead-zinc vein-related) deposits.