Fury Gold Mines Ltd. [FURY-TSX, NYSE American] has arranged to raise $5.02 million from a private placement financing, money that will be used to fund continued exploration at the company’s Eau Claire deposit located in the Eeyou Istchee territory in the James Bay region of Quebec.
The company said the private placement will consist of 6.7 million units priced at 75 cents per unit. Each unit will consist of one common share and one common share purchase warrant, each of which entitles the holder to purchase a common share at an exercise price of $1.20 until three years from closing.
The expiry date of the warrants can be accelerated to 30 days by notice from the company should the common shares trade at a price that is equal to or greater than $1.50 for 20 consecutive trading days.
Fury said the placement may be completed in multiple tranches.
Fury Gold shares eased 4.7% or $0.04 to 81 cents on volume of 127,260. The shares are currently trading in a 52-week range of $7.27 and 8.3 cents.
Fury Gold Mines is the product of an October, 2020 transaction that saw Auryn Resources Inc. acquiring Eastmain Resources Inc. and forming Fury, a Canada-focused exploration and development company that is positioned in three prolific mining regions across the country.
The company recently said it has completed project milestones by outlining drill programs for its Homestake Ridge, British Columbia, and Committee Bay, Nunavut projects, with high-grade extension targets at a drill-ready stage.
Fury owns a 100% stake in the high-grade Eau Claire gold project which is situated on over 24,000 hectares in the Eeyou-Istchee/James Bay region. Eau Claire is one of five known deposits in the region with the largest of these, the Newmont Corp., [NGT-TSX, NEM-NYSE]-owned Eleonore mine, located 57 kilometres north of the Eau Claire project.
Eau Claire contains an measured an indicated open pit resource of 1.2 million tonnes gradeing 5.86 g/t gold or 228,000 ounces, plus an underground resource of over almost 3.1 million tonnes, grading 6.30 g/t gold over 625,000 ounces.
A 2018 preliminary economic assessment envisages life of mine production of 951,000 ounces of gold over 12 years. Total capital expenditures are estimated at $283 million.
While advancing its technical understanding of Eau Claire, the company said it has identified two new target horizons that could meaningfully re-shape the project’s development scope. They are the Snake Lake structure and the 850 zone.
Fury President and CEO Mike Timmins said recently he is excited about the two new Eau Claire targets, the Snake Lake structure and 850 Zone, which could add an entirely new dimension to the project.
He said exploration crews are now seeing several regional and highly prospective discovery opportunities within the 54,000-hectare land package that we will be exploring this summer.