Big Ridge Gold Corp. [BRAU-TSXV] said Friday it has arranged a non-brokered private placement that is expected to raise $2 million, money that will be used to fund resource expansion drilling at the company’s past-producing Hope Brook Gold project in Newfoundland and Labrador.
Big Ridge Gold is an exploration and development company with a portfolio that includes a 100% interest in the highly prospective Oxford Gold Project in Manitoba, and 100% interest in the Destiny Gold project in Quebec. The company is also engaged in exploration in the Beardmore-Geraldton gold belt in Ontario.
Big Ridge is the operator of the Hope Brook Gold project, the site of a former gold mine that produced 752,163 ounces of gold between 1987 and 1997. The company said a 25,000-metre Phase one drilling program at the project continues to extend gold and copper mineralization to the southwest of the former producing Hope Brook open pit.
On Friday, the company said it expects to raise $2 million from a non-brokered private placement of 10 million flow-through units priced at 20 cents per unit.Â Each flow-through unit will consist of one common share of the company to be issued as aa flow through share and one-half common share purchase warrant. Each warrant will entitle the holder to purchase one common share for 27 cents for 24 months after the closing date of the offering, which is expected to occur around July 22, 2022.
The company said it intends to apply for approval from the TSX Venture Exchange for an offering size of up to 11.06 million units in the event that First Mining Gold Corp. [FF-TSXV, FFMGF-OTCQX, FMG-Frankfurt] elects to exercise, in part or in full, its participation rights to maintain its pro rata ownership in the company (currently about 10.6%).
First Mining is working to develop the Springpole gold project in northwestern Ontario, which ranks as one of the largest undeveloped gold projects in Canada. First Mining has launched a feasibility study at Springpole and permitting activities are ongoing.
On Friday, Big Ridge shares were unchanged at 18 cents and currently trade in a 52-week range of 42.5 cents and 16.5 cents.
Big Ridge’s shareholder group includes Michael Gentile, owner of 19.9% of the issued and outstanding shares of the company. Gentile is a former money manager and a strategic investor in the junior mining sector.
Big Ridge is earning up to an 80% interest in the advanced stage Hope Brook project which consists of 1,056 mineral claims, covering 26,400 hectares. The property hosts the Hope Brook deposit which consists of the Mine Zone and 240 Zone.
According to a NI-43-101-compliant resource estimate, Hope Brook contains an indicated resource of 844,000 ounces of gold as well as 110,000 ounces in the inferred category. The property also hosts a 28-person camp, existing tailings storage capacity, a 1,100-metre airstrip and is connected to grid power.