Gold Standard raising $28 million for Nevada gold project
Source: Gold Standard Ventures Corp.
Gold Standard Ventures Corp. [GSV-TSX, GSV-NYSE AMERICAN], a company that is tipped to become one of Nevada’s next gold producers, said one of its key shareholders has agreed to participate in a private placement financing deal in order to maintain its current share position in Gold Standard.
The news comes just one day after Gold Standard said it is raising $20 million from a bought deal financing comprised of 9.7 million common shares at $2.05 a share. The underwriting syndicate has been granted the option to purchase an additional 1.46 million shares at the offering price.
Concurrent with the offering, Gold Standard said Goldcorp Inc. [G-TSX, NYSE-GG] will increase its ownership position in Gold Standard to 9.9% by completing a non-brokered private placement worth $3.7 million at the offering price.
On Friday, Gold Standard also said OceanaGold Corp. [OCG-TSX, OCGT-ASX] – one of its key shareholders – is spending $4.4 million to participate in the non-brokered private placement in order to maintain its ownership position in Gold Standard at15.8%. That is on top of Goldcorp’s private placement investment.
Net proceeds of the public offering and private placement are expected to be $28 million, and will be used for continued exploration and early stage development at the company’s 100%-owned Railroad-Pinion Project and for working capital purposes.
Gold Standard has large property positions on both the Carlin and Battle Mountain gold trends, the most productive gold producing areas in Nevada. The company’s flagship project, the Railroad Gold Project, is located on the Carlin Trend adjacent to Newmont’s Rain and Emigrant mines and 47 km southwest of Elko. It has another property, the Lewis Project, located on the Battle Mountain Trend.
Gold Standard budgeted US $15.5 million in 2017 for drilling on the Railroad Project, which covers 208 km2, and features the newly discovered Dark Star deposit, the near surface oxide-gold Pinion deposit and classic Carlin-style North Bullion deposit.
The Pinion deposit now has a NI 43-101 compliant resource estimate consisting of an indicated mineral resource of 630,300 ounces of gold and an inferred resource of 1,081,300 ounces.
The Dark Star deposit, 2.1 km to the east of Pinion, has a NI 43-101 compliant resource estimate consisting of an indicated mineral resource of 265,100 ounces gold and an inferred resource of 715,800 ounces. The North Bullion is a high-grade sulphide deposit, located 7 km north of Pinion, and hosts 90,100 ounces gold in the indicated resource category and 805,800 ounces in the inferred category using a cut-off grade of 0.14 g/t gold.
Gold Standard CEO Jonathan Awde recently said drilling results at the Dark Star deposit continue to show that the deposit is taking shape as a potentially exceptional opportunity. In early December 2017, the company was still proceeding with five rigs working on Dark Star and several exploration targets throughout the Railroad Project.