Allegiant up 28% on executive suite shuffle

Drilling operations on Allegiant Gold's Eastside gold property near Tonopah, Nevada. Source: Allegiant Gold Ltd.

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Allegiant Gold Ltd. [AUAU-TSXV; AUXXF-OTCQX] on Thursday September 19 announced management changes, including the appointment of Peter Gianulis as CEO. Robert Giustra, who was previously Chairman and CEO, will continue as Chairman, the company said.

Allegiant was spun out last year to contain what were previously the Western U.S. exploration assets of Columbus Gold Corp. [CGT-TSX; CBGDF-OTCQX],

Allegiant owns 10 projects in the Western U.S., including seven in Nevada. All were handpicked by Andy Wallace, a successful and highly experienced geologist.

His track record of success includes multi-million-ounce gold discoveries including the Marigold, Pinson and Dee mines in Nevada.

However, in a press release on July 3, 2019, Allegiant said an agreement with Wallace’s company Cordilleran Exploration Co. (Cordex) has expired and is not being renewed due to his retirement. As result, Cordex will no longer be carrying out generative and mineral exploration activities on behalf of Allegiant.

“Given the improved market for gold equities, the board believes that it is an appropriate time for a transition in the management team, and to a CEO that will be focused on the business of Allegiant,” the company said in a press release. It also said Gianulis became CEO on September 16, 2019.

The founder of Carrelton Asset Management, a private equity and asset management firm that invests in the small cap natural resource sector, Gianulis has spent the past 23 years in the natural resource sector. Prior to founding Carrelton, he was a partner at Saranac Capital Management, a New York-based hedge fund with over US$4 billion in assets under management.

Sean McGrath, a chartered accountant, has been named CFO and Corporate Secretary. Allegiant also said Russell Ball has resigned from the board to take up a new role as CEO of Calibre Mining Corp. [CXB-TSXV; CXBMF-OTC].

Allegiant shares rallied on the news, rising 28.6% or $0.02 to $0.09 on volume of 606,200. The shares are currently trading in a 52-week range of $0.065 and 47.5 cents.

In a corporate update, Allegiant said it has been one of the most active gold exploration companies in the U.S. During the eight-month period up to April 2019, it drilled five gold projects. Allegiant’s flagship asset is the Eastside project in Nevada, which contains a pit-constrained inferred resource of 721,000 gold equivalent ounces in the Original Zone.

Meanwhile, Allegiant said drilling has commenced at its Bolo gold project in Nye County, Nevada. The drilling is being carried out by Barrian Mining Corp. [TSXV-AUAU; AUXXF-OTCQX], which can earn a 50.1% interest in Bolo over the next three years. To exercise the option, Barrian needs to spend US$4 million on exploration over the next three years while making staged option payments in shares to Allegiant worth US$1 million.

Barrian can increase its stake in the Bolo property to 75% by spending another US$4 million over an additional two years.

The drilling program will consist of 6,000 feet of reverse circulation drilling that will target additional mineralization at the South Mine Fault Zone (SMFZ). Drill holes are also planned for the Uncle Sam and for untested geophysical anomalies between SMFZ and Northern Extension Zone.

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