EMR Capital taking 10.86% stake in Revival Gold
Revival Gold Inc. [RVG-TSXV, RVLGF-OTCQX] said EMR Capital Management Ltd. has agreed to purchase 28.5 million shares of the company for 48 cents per common share, generating gross proceeds of US$10 million ($13.68 million).
EMR is a specialist resources private equity manager and operator with extensive operational experience and proven track record in successful resource operations, development and investment.
In addition to the EMR Strategic Placement, the company said it intends to complete a non-brokered private placement of up to $10.32 million by issuing up to a maximum of 21.5 million common shares for 48 cents per share.
EMR’s pro-forma interest in Revival Gold on closing is expected to amount to 10.86% assuming the concurrent offering is fully subscribed and there are no other common share issuances.
The company said Dundee Corp. [DC.A-TSX] via its Dundee Resources Ltd. unit, has the right to maintain its equity ownership stake in Rival. If the Dundee participation right is exercised in full and assuming the EMR Strategic Placement and concurrent offering are fully subscribed, the company will issue an additional 3.9 million common shares to Dundee, for additional gross proceeds of $1.86 million.
Revival Gold shares rose 3.03% or $0.015 to 51 cents in early trading, Friday, the shares trade in a 52-week range of 58 cents and 22.5 cents.
Revival Gold is one of the largest pure gold mine developers in the United States. The company is advancing development of the Mercur Gold project in Utah and mine permitting and preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.
Revival recently completed a preliminary economic assessment (PEA) for an open pit heap leach operation at Mercure. The project is expected to produce 95,000 to 105,000 ounces of gold annually over a 10-year mine life.
“Field work is well underway at Mercur and we are excited about the opportunities to add value to the project through drilling, metallurgical de-risking and collection of archeological data to support permitting,” said Hugh Agro, Revival Gold President and CEO in a recent press release. “At Beartrack-Arnett, we’ve prioritized exploration at the project’s exciting high grade underground potential,” he said. “We are in the enviable position of owning two high quality development projects. The projects naturally sequence with Mercur expected to be the first to production and Beartrack-Arnett offering our shareholders significant upside potential through ongoing exploration.”
Beartrack-Arnett is the largest past-producing gold mine in Idaho. The Beartrack Mine was operated by Meridian Beartrack from 1994 to 2000 and produced approximately 600,000 ounces of gold. The mine operated at 13,600 tonnes per day and achieved life of mine recovery of 88% based on the cyanide-soluble grade from the ore processed during heap leach operations. The mine was closed at a time when the price of gold dropped below US$300 an ounce.