Equity Metals upsizes financing for B.C. gold-silver project

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Equity Metals Corp. [EQTY-TSXV, EQMEF-OTCQB, EGSD-FSE] shares were active Wednesday after the company said it is increasing the size of a previously announced non-brokered private placement financing, which is now expected to generate $2 million.

The company said proceeds are earmarked for work programs at the company’s Silver Queen gold-silver exploration property in British Columbia.

Equity Metals said the 16.9 million unit offering now consists of 8.0 million non-flow through units priced at 10 cents each and generating $800,000, plus 4.2 million flow-through units priced at 12 cents each, generating $500,000, and 4.7 million charitable flow-through units priced at 14.7 cents per unit, for gross proceeds of $700,000.

Each non-flow-through unit will consist of one non-flow through common share and one transferrable share purchase warrant. Each flow-through and charitable flow-through unit will consist of one flow-through share and one warrant. Each warrant will entitle the holder to purchase one non-flow-through common share for 3.0 years at 15 cents.

Equity Metals shares advanced on the news, rising 3.8% or $0.005 to 13.5 cents on volume of 1.4 million. The shares are trading in a 52-week range of 18 cents and $0.035.

The Silver Queen Project is a premier gold-silver property with over 100 years of historic exploration and development and is located 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 contains two historic declines into the No 3 Vein, camp infrastructure and a maintained tailings facility.

The property covers 45 mineral claims, 17 crown grants, and two surface crown grants totalling 18,852 hectares with no underlying royalties. Mineralization is hosted by a series of epithermal veins distributed over a 6.0-square kilometre area.

The company has previously said Silver Queen contains a NI-43-101 compliant indicated resource of 244,000 ounces of gold equivalent (AuEq) consisting of 85,000 ounces of gold, 5.2 million ounces of silver, 5.0 million pounds of copper and 17 million pounds of lead, plus 114 million pounds of zinc.

On top of that is an inferred resource of 193,000 ounces of AuEq, consisting of 64,000 ounces of gold, 4.7 million ounces of silver, 5.0 million ounces of copper, 16 million pounds of lead and 819 million pounds of zinc.

In a July, 2020 news release, the company said it had received a five-year, area-based exploration permit for the project, which is located in the well-mineralized Skeena Arch region of B.C. At that time, the company said drilling would focus on systematic resource expansion on an historic high-grade precious-metal-enriched epithermal vein system as well as the identification of new mineral discoveries to further increase existing mineral resources.

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