Equity Metals plans $3.09 million private placement
Equity Metals Corp. [EQTY-TSXV, EQMEF-OTCQB, EGSD-FSE] is proposing to undertake a non-brokered flow-through private placement that is expected to raise $3.09 million.
Proceeds from the financing are earmarked for the initial delineation of two new targets located to the northeast of, and not included in, the earlier 2022 updated mineral resource estimate at the Silver Queen gold/silver project in British Columbia.
The company said a 6,000-metre drill program is currently underway and these additional funds allow for drilling to continue well into the summer on the Cole and George Lake veins systems, which have been partially tested by historical and Equity drilling. In the current program, three core holes have been completed on the George Lake Target, and samples from two of these holes have been submitted for analysis. Assays are pending and are anticipated over the coming weeks.
Meanwhile, Equity Metals said the private placement will consist of 10.5 million charity/premium flow-through units (FT) at 29.5 cents. Each unit will consist of one flow-through common share and one-half of one non-flow-through warrant.
Each whole warrant entitles the holder to purchase one non-flow-through common share for 3.0 years at 29.5 cents.
Equity Metals shares eased 2.50% or $0.005 to 19.5 cents Thursday and trade in a 52-week range of 25.5 cents and $0.075.
Silver Queen Project is a premier gold-silver property with over 100 years of historic exploration and development and is located in the Skeena Arch porphyry copper region of B.C., adjacent to power, roads, and rail with significant mining infrastructure that was developed under previous operators Bradina JV (Bralorne Mines) and Houston Metals Corp. (a Hunt Brothers company). The property covers 18,852 hectares with no underlying royalties and contains two historic declines into the No 3 Vein, camp infrastructure and a maintained tailings facility.
Mineralization is hosted by high-grade precious and base metal veins related to a buried porphyry system which has only been partially delineated.
In December, 2022, the company announced an updated indicated and inferred resource of 85 million silver equivalent (AgEq) ounces. The estimate was based on 78 holes or 25,659 metres of drilling in six successive exploration phases starting in late 2020.
Five separate target areas were tested in part and thick intervals of high-grade gold, silver and base metal mineralization have been identified in each of the Camp Vein, The Sveinson Target, No. 3 Vein and NG-3 Vein system.
Hopes that the existing resource can be expanded are based on exceptional assay results, which demonstrate exploration upside across several of the more than 20 different veins which have been identified on the property so far.
Looking ahead to drilling in 2024, the company said it will focus on the systematic resource expansion of the Camp and Sveinson deposits and the further delineation of mineralization at both the Cole Lake and George Lake targets which were not included in the 2022 mineral resource update.
Several additional new targets will be tested in 2024, including the newly identified soil anomaly north of the Camp Deposit.