Elevation Gold completes $22.9 million offering

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Elevation Gold Mining Corp. [ELVT-TSXV, NHVCD-OTC], a company that recently changed its name from Northern Vertex Mining Corp,. has raised $22.9 million from a marketed public offering. That’s up from the earlier $20 million target.

The company said the proceeds will be used to further advance its Moss Mine gold project and for general working corporate purposes.

Elevation shares advanced on the news, rising 2.5% or $0.01 to 41 cents on volume of 192,600. The shares are trading in a 52-week range of $2.64 and 38 cents.

The company said 43.3 million units were sold under the offering at 53 cents per unit, raising gross proceeds of $22.9 million. That amount includes 5.56 million units that were issued in relation to over-allotment options granted to the agents.

Each unit consists of one common share and one common share purchase warrant, each of which entitles the holder to acquire an additional common share for 70 cents until March 24, 2027.

Elevation Gold controls two projects on the Walker Lane Gold Trend of western Arizona and Nevada. The company operates the Moss Mine, Arizona’s largest pure metals producer. It is exploring the Hercules Gold Project in Nevada.

Elevation recently released new reserve and resource estimates for the Moss gold mine, which reached the commercial production stage in September, 2018, after the company’s partner Sprott Private Resource Lending LP, agreed to provide up to US$100 million in acquisition and development funding as well as a CAD$2 million private placement.

By deploying low-cost heap leaching recovery methods, Elevation is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US$24 million and will be used to fund expansion and acquisitions.

However, the company has said its new leadership team believes the Moss Mine and surrounding 168-square kilometre land package possesses unrealized gold exploration potential. As a result, it began an aggressive near mine and regional exploration drill program in March, 2021, to deliver new resource ounces while beginning to demonstrate the potential of the property.

According to the technical report, proven and probable reserves now stand at 12.7 million tonnes with grades of 0.45 g/t gold and 5.4 g/t silver, containing 184,500 ounces of gold and 2.2 million ounces of silver.

Measured and indicated resources are estimated at 38.8 million tonnes of grade 0.39 g/t gold and 4.6 g/t silver, containing 490,200 ounces of gold and 5.75 million ounces of silver.

On top of that is an inferred resource of 6.5 million tonnes of grade 0.35 g/t gold and 4.5 g/t silver, containing 73,800 ounces of gold and 940,000 ounces of silver.

Based only on the proven and probable estimates and a mining rate of 11,000 tonnes per day, the life of mine plan for the Moss mine has been extended to 2025.

 

 


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