Crystal Lake raises $3.8 million for B.C. drilling
NW Zone - VP Exploration Maurizio Napoli & HEG Associates Chief Geologist John Ryan
Crystal Lake Mining Corp. [CLM-TSXV; SIOCF-OTC; SOG-FF] said Friday January 3 that it has raised $3.8 million from private placements of units and flow-through units that will be used for continued exploration at the company’s Newmont Lake Project in northwest British Columbia’s Golden Triangle region.
That amount has been raised after the company completed the last of three tranches of its non-brokered private placement through the issuance of 1.68 million units priced at 10 cents per unit and 357,000 flow-through units at 13 cents each.
Each unit consists of one common share and one transferable warrant, with each warrant entitling the holder to purchase one additional share at an exercise price of 15 cents per share for five years following the date of closure, provided that, in the event that the closing price of the company’s shares on the TSX Venture Exchange is 75 cents or greater per share during the 20 consecutive trading day period at any time subsequent to four months and one day after the closing date. The warrants will expire at 4:00 p.m. Pacific Time on the 30th day after the date on which the company provides notice of such accelerated expiry to the holders of the warrants.
Each flow-through unit consists of one flow-through share in the capital of the company and one transferable warrant with each warrant entitling the holder to purchase one share for two years from the closing date at an exercise price of 20 cents per share.
On Friday, Crystal Lake shares rose 7.4% or $0.01 to 14.5 cents. The shares are trading in a 52-week range of $0.095 and 42 cents.
Having recently expanded the size of its Newmont Lake Project by approximately 25% to 55,100 hectares, Crystal Lake has said it is now the largest landholder among junior companies in northwest British Columbia’s broader Eskay camp.
Newmont Lake is located in the heart of the Golden Triangle and includes the McLymont Fault System, which is not far from the former Eskay Creek and Snip gold mines.
Crystal Lake has an option to earn a 100% interest in the Newmont Lake Project. Under an agreement with Romios Gold Resource Inc. [RG-TSXV, RMIOF-OTC], it can exercise the option by spending $8 million on exploration at Newmont Lake over three years.
In August, 2019, the junior said it has launched the first-ever diamond drilling program at Burgundy Ridge on the western side of the Newmont Lake Project.
On October 25, 2019, the company announced results from the first two of 10 drill holes. Highlights from drilling at Burgundy Ridge (now referred to as the Ridge Zone) included 91.26 metres of 0.38% copper, 0.30 g/t gold, and 4.12 g/t silver starting at a depth of 36.7 metres.
A higher-grade core of mineralization within the 91.26-metre interval assayed 25.78 metres of 0.73% copper, 0.63 g/t gold, 9.36 g/t silver, 0.11% zinc starting at a depth of 82.22 metres.
The company said the second diamond drill hole did not make it to its final target and collapsed at a depth of 147 metres due to bad ground conditions, 203 metres short of its target depth of 350 metres for the first-pass drilling.
The Ridge Zone is part of the larger Burgundy Trend, an area that received its first ever drilling in October, 2018. The Burgundy Trend is located less than 20 km from the 303-megawatt AltaGas hydroelectric power facility that was completed in 2015.
The 72-megawatt Mclymont Creek Hydroelectric Plant and access road sit on the southern boundary of the Newmont Lake Project. The road which was constructed to provide access to these facilities skirts the southern boundary of the property.