Greenlight Metals raising $10 million for Wisconsin exploration
Greenlight Metals Inc. [GRL-TSXV] has announced details of a $10 million bought deal financing, saying it will used for exploration and development at its Bend and Penokean VMS (volcanogenic massive sulphide) projects in Wisconsin.
The company said the bought deal private placement will consist of 28.6 million common shares priced at 35 cents each.
is a company that offers investors a window on first mover status in one of North America’s most prospective volcanogenic massive sulphide (VMS) belts. The company has granted the underwriters an option to purchase for resale up to an additional 15% of the offering on the same terms, potentially adding $1.5 million to the gross proceeds. That option is exercisable up to 48 hours prior to closing, which is expected to occur on November 26, 2005.
On Wednesday, Greenlight eased 2.5% or $0.01 to 38.5 cents. The shares trade in a 52-week range of 45 cents and 13 cents.
The company is working to expand known resources and making new discoveries on the on the Penokean Volcanic Belt, a region that has been compared to the Abitibi and Flin Flon mining belts (albeit 80 years ago) in Canada.
The company’s key assets on the belt are the Reef gold-copper and Bend copper-gold properties, each of which contains known historical resources with potential for expansion. In addition, with the closing of the amalgamation with Can-American Minerals Inc back in July 25, 2022, the company controls two additional properties in Wisconsin –Lobo and Lobo East.
The Bend VMS project represents an advanced exploration opportunity. To date, over US$8 million has been invested in the project, including 59 diamond drill holes, totalling 23,849 metres. Historical drilling highlights include 67.69 metres grading 1.01% copper and 0.99 g/t gold, including 27.6 metres at 2.40% copper and 1.43 g/t gold.
Past operators reported a 4.0 million tonne historical resource split between a copper zone (2.8 million tonnes at 2.41% copper, 1.43 g/t gold, 13.70 g/t gold) and a gold zone (1.2 million tonnes of 4.73 g/t gold, 0.31% copper, 2.79 g/t silver).
Greenlight recently completed a phase on drill program (six holes), targeting the eastern extensions of the known Bend deposit. The company said drilling confirms that mineralization extends eastward along a 36-42 degree plunge and remains open at depth and along trend.
Drilling highlights include B25-006 which was drilled 65 metres down dip from the previously released hole B25-005 (19.32 metres of 2.95% Cu Eq). It returned 43.67 metres (drilled thickness) averaging 1.06 g/t gold, 0.68% copper, 6.23 g/t gold and 109.74 g/t tellurium (1.80% CuEq, not including Te) from 320.33 metres over a broad mineralized zone encompassing the sulfide zone.
The company is now moving swiftly to plan an expanded winter drill program designed to further define the extent of this growing VMS system and test priority targets both down plunge and along strike.