Endurance Gold raises $8.3 million for B.C. project
Endurance Gold Corp. [EDG-TSXV] said it has raised $8.3 million from a private placement financing and will use part of the proceeds to advance its Reliance gold property in southwestern British Columbia.
The announcement comes after Endurance recently announced an inaugural mineral resource estimate of 19.6 million tonnes at 2.30 g/t gold or 1.45 million ounces at the Reliance project.
That includes a near-surface resource of 15.6 million tonnes of grade 2.23 g/t gold or 1.12 million ounces of contained gold, and an underground resource of 4.0 million tonnes of grade 2.58 g/t gold or 0.33 million ounces. The company has said it was planning for infill drilling within the constraining pit shell to expand and upgrade the near surface resource and deeper step-out drilling to expand the underground inferred resource. “Moving forward, we plan to further demonstrate the potential of the Reliance Project through resource expansion, drill testing new surface anomalies along trend on the Royal Shear and several other high priority structures,” the company has said. The resource estimate incorporates the Imperial, Crown, and Eagle Zones within the Royal Shear.
Under the terms of the offering, the company sold 4.18 million flow-through units priced at $0.955 per FT unit generating gross proceeds of just over $4.0 million, as well as 6.68 million units (the HD units) priced at $0.65 each for gross proceeds of $4.34 million. Proceeds from the HD units include an additional 526,250 units, representing the partial exercise of the agents’ over-allotment option.
Each FT unit consists of one common share and one-half of one common share purchase warrant, each which was issued as a flow-through share within the meaning of the Income Tax Act (Canada). Each HD unit consists of one non-flow through common share for 90 cents at any time before March 11, 2028.
On Wednesday, Endurance Gold shares rose 1.75% or $0.01 to 58 cents. The shares currently trade in a 52-week range of 90 cents and 11 cents.
Reliance is the company’s flagship project and is located in the Gold Bridge area of southern B.C., 10 kilometres north of the Bralorne-Pioneer gold mining camp.
The Bralorne mine complex was one of the highest-grade and longest producing gold mines in British Columbia. It operated for over 50 years, before production ceased in 1971 due to the low gold price at the time.
Endurance secured an option to earn a 100% interest in the Reliance property in September, 2019, from two map stakers.
Reliance is an epizonal orogenic type target. Mineralization is related to silicification as breccia, veins and stockwork in a wide ankerite alteration zone within the regional Royal Shear over a 1.2-kilometre strike length.
The most explored structure is the Royal Shear, which hosts the Imperial, Crown, Diplomat, Senator and Eagle Zones identified by historic surface sampling with associated encouraging gold values.