Augusta Gold Corp. [G-CSE; BFGCD-OTCQB; 11B-FSE] has raised $17 million from a private placement of 7.56 million units priced at $2.25 each. Net proceeds from the private placement will be used to advance exploration efforts at the company’s wholly-owned Bullfrog gold project in Nevada, and for general and working capital purposes.
Under the terms of the private placement, each unit consists of one common share of the company and one-half of one common share purchase warrant. Each full warrant is good to buy one common share for three years at an exercise price of $2.80.
August Gold shares eased 4.0% or 0.08 to $1.92 in light trading volume and now trade in a 52-week range of $2.79 and 29 cents.
Augusta Gold, a company previously known as Bullfrog Gold, wants to build an operating mine. In keeping with that plan, the company is undertaking a drill program targeting an under-explored land package in Nevada’s Bullfrog district.
The company changed its name after consolidating its capital on the basis of one new share for six old ones, and strengthening its board of directors. The appointees include Richard Warke, who has been named Executive Chairman, Poonam Puri and John Boehner. Boehner is a member of the Republican Party and former Speaker in the U.S. House of Representatives.
In connection with the transaction, the company named Maryse Belanger as President and CEO. Belanger was President, COO and director of Atlantic Gold Corp., a company acquired by ASX-listed Santa Barbara Ltd. in July, 2019.
As a result, the company is now led by a management team and board of directors with a proven track record of success in financing and developing mining assets and delivering shareholder value.
Prior to the name change Augusta acquired the rights to 1,500 acres adjoining its Bullfrog Gold Deposit in Nevada from Barrick Gold Corp. [ABX-TSX; GOLD-NYSE]. The properties are located about 200 km northwest of Las Vegas in the Bullfrog district and 10 km west of Beatty Nevada.
The private placement was subscribed by company insiders including Richard Warke and other strategic investors. Warke leads Augusta Investments Inc., a mining sector-focused management group based in Canada and the U.S.
“The financing provides funds to execute on our 2021 programs, including undertaking a drill program in excess of 85,000 metres and de-risking the project through environmental permitting and engineering work,” Belanger said.