Ethos Gold Corp [ECC-TSXV] shares advanced in active trading Wednesday after the company said it is increasing the size of a previously announced non-brokered private placement of units.
The company said it now expects to raise $2.25 million after Crescat Portfolio Management LLC elected to exercise participation rights that were granted by the company under a subscription agreement dated August 24, 2020.
Crescat, which recently held a 12.7% stake in Ethos Gold, is an asset management firm, headquartered in Denver, Colorado.
News that the financing is being upsized comes just two days after the company announced a $2.0 million strategic investment by financier Eric Sprott. The company said Sprott, through an Ontario numbered company intended to subscribe for $2.0 million worth of units priced at 32 cents per unit.
Each unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to buy one common share at an exercise price of 45 cents at any time for up to 24 months after the closing date of the private placement.
Private placement proceeds are earmarked for exploration at the Toogood project on New World Island, Newfoundland and for general working capital
Ethos shares advanced on the news, jumping 5.3% or $0.02 to 40 cents on volume of 735,320. The shares trade in a 52-week range of 44.5 cents and 14.5 cents.
Ethos Gold, a Discovery Group company, has accumulated a portfolio of district-scale projects in British Columbia, Ontario, Quebec and Newfoundland. The company’s technical team is led by Rob Carpenter, the former CEO of Kaminak Gold Corp. Carpenter led the Kaminak team from an initial listing in 2005, through the acquisition and discovery of the multi-million-ounce Coffee Gold Project in the Yukon.
Ethos can earn a 100% interest in the Toogood project, which covers 11,825 hectares and is located on the same geological belt that hosts several gold discoveries, including Marathon Gold Corp.’s [MOZ-TSX, OTC-MGDPF] Valentine gold project.
The company said visible gold has been identified in bedrock over a structural corridor of more than 5.0 kilometres. Reported high-grade assays from grab samples include 346 g/t, 245 g/t, 127 g/t and 99.7 g/t gold.
Plans for 2021 include a 7.0-hole drill program in the fall, as well as historical data review, mapping, prospecting and sampling as well as ground-truthing.
Ethos recently launched its first drill program at the Perk-Rocky copper-gold porphyry project, 200 kilometres west of Williams Lake in British Columbia.
Perk-Rocky is a large copper-gold-porphyry which is situated in a major geological trend that also hosts Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) Highland Valley, and New Gold Inc.’s (NGD-TSX, NYSE American) New Afton as well as Taseko Mines Ltd.’s [TKO-TSE] New Prosperity mines.
It is one of the few remaining road-accessible, metal endowed magmatic-hydrothermal systems in British Columbia that has never previously been drill tested.