Gold Standard unveils $30 million bought deal financing
Drilling operations at Gold Standard's Railroad-Pinion Project in the Carlin Trend, Nevada. Source Gold Standard Ventures Corp.
Gold Standard Ventures Corp. [GSV-TSX; GSV-NYSE] is raising $30 million from a bought deal sale of 34.1 million common shares at $0.88 per share. Proceeds are earmarked for development, permitting and exploration activities at the company’s South Railroad open pit, heap leach gold project in Nevada.
The company said it has granted the underwriters an option to purchase up to an additional 15% of the offering to cover over-allotments. The option is exercisable at the offering price for a period of 30 days following the date of closure, which is expected to occur on February 17, 2021.
Gold Standard shares advanced on the news, rising 4.2% or $0.04 to 98 cents in active volume of 2.64 million. The shares are currently trading in a 52-week range of $1.50 and 46 cents.
Gold standard is a 9.9%-owned affiliate of Newmont Goldcorp Corp. [NGT-TSX, NEM-NYSE], the world’s largest gold producer. Another key shareholder is OceanaGold [OCG-TSX; OCGT-ASX], which has 15.8%.
Gold Standard has a 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-Pinion Gold Project, is located on the Carlin Trend. It has another property, the Lewis Project on the Battle Mountain Trend.
The Railroad-Pinion Project has two adjacent parts: the North Railroad portion, which includes the POD, Sweet Hollow, and North Bullion deposits, collectively known as the North Bullion Deposit, and the South Railroad portion, which includes the Dark Star, the Pinion Deposit, and the Jasperoid Wash Deposit.
Gold Standard is hoping to prove that Railroad-Pinion can be the next successful mine on the Carlin Trend. It plans to achieve that goal by advancing the South Railroad portion of the project through permitting and feasibility study towards a potential production decision.
The Pinion deposit has proven reserves of 23,000 ounces and a probable reserve of 341,000 ounces. Those estimates are based on an open pit mine plan, production schedule and a gold price of US$1,275/oz, and a silver price of US$16.50/oz.
The Dark Star deposit, 2.1 km east of Pinion, has a NI 43-101 compliant resource estimate of probable reserves of 640,000 ounces gold and proven reserves of 243,000 ounces gold.
The mineral estimate for Dark Star is based on an open pit mine plan, production schedule and a gold price of US$1,275/oz.