Allegiant raising $3.5 million, updates Nevada exploration plans
Allegiant Gold Ltd. [AUAU-TSXV] has released an update on its corporate strategy and exploration plans for 2025.
The move comes after the company said it is launching a non-brokered private placement financing offering of up to 19.4 million units priced at 18 cents per unit for gross proceeds of up to $3.5 million. Each unit will consist of one common share and one half of one common share purchase warrant.
Proceeds will be used to advance the company’s flagship Eastside gold project in Nevada, including conducting further geophysical studies, an in-depth structural geological study and additional drilling at the McIntosh Zone and other nearby areas. “We are also exploring alternatives for our other non-core properties in the State of Nevada in order to advance these projects without incurring additional dilution,’’ the company said.
Under the terms of the financing, each warrant will entitle the holder to acquire an additional common share at a price of 28 cents for 12 months from the date of closing, provided that in the event that the closing price of the common shares on the TSX Venture Exchange is 70 cents or greater during any 10 consecutive trading day period at any time subsequent to four months and one day after the closing date. The warrants will expire at 4:00 p.m. Vancouver time on the 30th day after the date on which the company provides notice of such accelerated expiry to the warrant holders.
Allegiant owns five highly prospective gold projects in Nevada. The company’s flagship Eastside project hosts a large and expanding gold resource and is located in an area of excellent infrastructure. Preliminary metallurgical testing indicates that both oxide and sulphide gold mineralization at Eastside is amenable to heap leaching.
So far, Allegiant has outlined an inferred resource at Eastside of 1.1 million ounces of gold and 8.8 million ounces of silver.
In its corporate update Allegiant said its last public financing to the general market was completed in 2021. “Since that time, we have funded our operations via a direct investment by Kinross Gold Corp. (K-TSX, KGC-NYSE) and the sale of certain non-core assets, specifically our Mongoilon Property, which afforded us with non-dilutive financing’’ the company said. “We pride ourselves on cost discipline and low dilution while continuing to advance our projects,’’ it said. “ We have the lowest dilution rate of any active exploration company in our peer group by a significant margin.’’
In 2025, Allegiant’s focus and strategy will be as follows:
- Conduct further geophysical and structural studies in and around the Mcintosh zone.
- Resume drilling within the Mcintosh Zone to test our higher-grade targets.
- Conduct additional studies and analysis on the Castle Zone, including the possibility of a preliminary economic assessment and other baseline studies for permitting.
On Tuesday, Allegiant shares were unchanged at 23 cents. The shares trade in a 52-week range of 44 cents and 20 cents.