Anaconda Mining Inc. [ANX-TSX; ANXGF-OTCQX] said Friday April 30 that it has upsized a previously announced flow-through private placement offering which is now expected to raise up to $8.5 million. That marks an increase from the previous $6.0 million target.
The company said it will now offer 10.2 million flow-through shares at 83 cents per share. It said there will no longer be an option to place up to an additional 15% of the number of flow-through shares purchased in the offering, which is expected to close on May 20, 2021.
Gross proceeds will be used to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures (as defined in the Income Tax Act Canada) related to the company’s projects.
Anaconda shares eased 1.5% or $0.01 to 66 cents and trade in a 52-week range of 93 cents and 21.5 cents.
The announcement comes after Anaconda recently commenced a 10,000-metre diamond drilling program at its Tilt Cove gold project within the Baie Verte mining district, Newfoundland, approximately 45 km by road from the company’s Pine Cove mill and a long- term tailings facility.
The drill program follows the recent completion of a 19.1 line-km IP geophysical survey and geological mapping.
The company is drilling in the Tilt Cove area of Newfoundland, a significant, recently consolidated land package encompassing the same geological trend as the past producing, high-grade Nugget Pond Mine, which had an average recovered grade of 9.85 g/t gold.
Anaconda President and CEO Kevin Bullock said drilling will focus on the Scarp Zone and Growler target, and then move to the West Pond and East Pond targets, with drilling expected to continue into the winter.
Anaconda Mining operates the Point Rousse Project in the Baie Verte Mining District comprising the Pine Cove open pit mine and fully-permitted Pine Cove Mill and tailings facility as well as the Stog’er Tight and Argyle deposits.
Anaconda produced 18,268 ounces of gold in 2020 from its Point Rousse operation, achieving its annual guidance of 18,000-19,000 ounces, with the processing of ore from the Argyle Gold Mine commencing in Q4 2020.
All-in sustaining cash costs per ounce sold, including administration and sustaining capital expenditures were US$1,576 in Q4 2020 and US$1,220 for the full year. Net income for 2020 was $8.2 million or $0.06/share, up from $373,047 or $0.00 per share in 2019. The increase was due to the higher gold price and increased gold sales.