Fury raising $11 million for Quebec gold, shares rise
Fury Gold Mines Ltd. [FURY-TSX, NYSE American] shares rallied Tuesday after the company said it has arranged for an $11 million private placement, with proceeds earmarked for Eau Claire deposit located in the Eeyou Istchee territory in the James Bay region of Quebec.
The company said it has entered into a subscription agreement with two placees, including a Canadian corporate investor and an institutional investor from the United States, resulting in a private placement sale of 13.75 million common shares priced at 80 cents each.
Fury Gold shares advanced on the news, rising 7.5% or $0.06 to 86 cents on volume of 165,700. The shares are currently trading in a 52-week range of $1.78 and 74 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.
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 a 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.
News of the $11 million private placement comes less than a week after Fury said it has launched the 2022 exploration drilling program at Eau Claire. It said the goal of the program is to expand the high-grade Eau Claire gold deposit and follow up on the Percival discovery.
The Percival prospect, located 14 kilometres east of the Eau Claire deposit is currently represented by a 400-metre by 100 metre mineralized footprint hosted within folded sulphidized and silicified breccia in an interbedded volcanic and sedimentary sequence.
A recently completed survey covering 6.5 kilometres of prospective stratigraphy along the Percival trend identified 15 discrete gold anomalies with associated pathfinder elements. Two of these anomalies were previously known prospects, Percival and Carodoc. The remaining 13 anomalies are new occurrences of gold and associated pathfinder mineralization.
The 2022 drill program will initially consist of approximately 15,000 metres, focusing on extending the resource along the southeast margin of the Eau Claire deposit, expanding the recent discovery at the Western Hinge target and further testing the Percival discovery.
The resource expansion drill program will continue to target the high-grade southeast margin of the existing resource. This portion of the drill program is designed to extend the resource towards the southeast by connecting isolated resource blocks and expanding upon drill intercepts from 2021, including 6.04 metres of 11.56 g/t and 7.09 metres of 23.27 g/t.
In addition, the company plans to drill between historical intercepts further to the east with the goal of bringing this area into an inferred resource category.