HIghgold raising $9 million for Alaska polymetallic project
Highgold Mining Inc. [HIGH-TSXV, HGGOF-OTCQX] said that due to strong investor interest, the company is increasing the size of a previously announced private placement to $9 million, up from an earlier $7 million target.
As a result, the maximum number of shares to be issued under the offering has been increased to up to 13.7 million common shares at 66 cents per share from 10.6 million.
News of the upsized private placement was released after the close of trading on April 5, 2023, when Highgold shares closed at 71 cents. The shares are currently trading in a 52-week range of $1.04 and 59 cents.
Private placement proceeds are earmarked for exploration and development in connection with the company’s gold-rich polymetallic project in Southcentral Alaska.
Johnson Tract is a poly-metallic (gold, copper, zinc, silver, lead) project located near tidewater, 200 kilometres southwest of Anchorage. The 21,000-acre property includes the high-grade Johnson Tract Deposit and at least nine other mineral prospects over a 12-kilometre strike length.
Highgold acquired the project through a lease agreement with Cook Inlet Region Inc. (CIRI), one of 12 land-based Alaska Native regional corporations created by the Alaska Native Claims Settlement Act of 1971. CIRI is owned by more than 9,100 shareholders who are primarily of Alaska Native descent.
The JT Deposit hosts an indicated resource of 3.5 million tonnes, grading 9.39 g/t gold equivalent (AuEq), comprised of 5.33 g/t gold, 6.0 g/t silver, 0.56% copper, 0.67% lead and 5.21% zinc. On top of that is an inferred resource of 786,000 tonnes, grading 4.76 g/t AuEq, comprised of 1.36 g/t gold, 9.1 g/t silver, 0.59% copper, 0.30% lead and 4.18% zinc.
That adds up to an indicated resource of 1.05 million ounces of AuEq, and an inferred resource of 108,000 ounces of AuEq.
Originally explored from 1982 to 1995, the project was inactive for almost 25 years prior to the acquisition by Highgold in 2019. The company says the large land package is under explored with significant exploration potential. Highgold is focused on both expanding the JT deposit and generating new discoveries.
Meanwhile, Highgold recently said it is planning to spin out its Ontario and Yukon exploration properties into its wholly-owned subsidiary Onyx Gold Corp. Under the deal, existing shareholders of Highgold will receive one common share of Onyx for every four shares of Highgold.
The spinout is expected to be completed by way of a court-approved plan of arrangement. Highgold said it will seek a listing or Onyx on the TSX Venture Exchange.
Aside from Johnson Tract, Highgold controls one of the largest junior gold miner land positions in the Timmins, Ont., gold camp, including the Munro-Croesus Gold property and the large Golden Mile and Timmins South properties.