Canagold raises $3.22 million for B.C. gold-antimony project
Canagold Resources Ltd. [CCM-TSX, CRCUF-OTCQB, CANA-FRA] has raised $3.22 million from a charity flow-through financing. The company said it issued 9.2 million common shares that qualify of flow-through shares for the purposes of the Income Tax Act (Canada) at a price of 35 cents per flow-through share.
The gross proceeds from the issuance of the flow-through shares will be used to incur Canadian exploration expenses at the company’s New Polaris project in northwestern British Columbia. The project is located 100 kilometres south of Atlin and 60 kilometres northeast of Juneau Alaska. It consists of 61 contiguous Crown-granted mineral claims and one modified grid claim covering 850 hectares.
Canagold is focused on advancing New Polaris through feasibility and permitting.
Under the offering, Sun Valley Investments AG purchased 3.68 million common shares. Goldlogic Corp., an affiliate of Sun Valley, purchased 920,000 shares, with a third investor purchasing the remaining common shares. Prior to the closing of the offering, Sun Valley and Goldlogic together owned 48.16% of Canagold’s total issued and outstanding shares. Following closing of the offering, Sun Valley beneficially owns 72.1 million common shares and Goldlogic owns 16.5 million, representing 48.25% of the total issued and outstanding shares.
The shares were unchanged Wednesday at 34 cents and trade in a 52-week range of 39 cents and 18 cents.
New Polaris was mined via underground methods from 1938 to 1942, and again from 1946 to early 1951, producing 250,000 ounces of gold from 740,000 tonnes of ore at an average grade of 10.3 g/t gold. Three main veins (AB, C and Y) were mined to a maximum depth of 150 metres and have been traced by drilling for up to 1,000 metres along strike and 800 metres down dip. They are still open for expansion.
According to a 2023 estimate, the project is currently estimated to contain an indicated resource of 2.9 million tonnes of grade 11.61 g/t gold or 1.1 million ounces at a cutoff of 4.0 g/t. On top of that is an inferred resource of 926,000 tonnes of grade 8.93 g/t gold or 266,000 ounces at a cutoff of 4.0 g/t.
The company recently announced a mineral resource update for New Polaris that quantifies the antimony metal contained with in the current gold resource. The company said the current gold resource includes 5,630 tonnes of antimony metal within the base case indicated gold resource and 1,195 tonnes of antimony metal within the base case gold resources.
Antimony, recognized as a critical mineral in Canada, the U.S. and the European Union, plays a vital role in numerous industrial applications. They include defense technologies, semiconductor production, fire retardants, and the manufacturing of solar panels.
“Past metallurgical testing has shown excellent antimony recovery rates within the New Polaris concentrate, highlighting its potential to enhance future revenue streams,’’ said Canagold CEO Catalin Kilofliski.