K2 raises $3.67 million for California gold exploration
K2 Gold Corp. [KTO-TSXV, KTGDF-OTCQB, 23K-FSE] has raised $3.67 million from a non-brokered private placement financing. The company said it will use the net proceeds for exploration and to complete permitting at the company’s Mojave Gold Project located in Inyo County, California.
Under the terms of the financing, each unit consists of one common share and one half of one transferable share purchase warrant. Each warrant can be used to acquire one common share for 30 cents from 12 months from the date of issuance, subject to an acceleration clause that is detailed in the company’s press release.
On Tuesday, K2 shares were unchanged at 18 cents and trade in a 52-week range of 21.5 cents and $0.075.
All warrants that remain unexercised following the acceleration expiry date shall immediately expire and all rights of holders of such warrants shall be terminated without any compensation.
A member of the Discovery Group, K2 currently has projects in the southwest U.S. and the Yukon.
The Mojave project is a 5,380-hectare oxide gold project with base metal targets. Multiple previously recognized surface gold targets have been successfully drilled in the past, most notably by Newmont Corp. [NGT-TSX, NEM-NYSE, ASX, PNGX] and BHP Billiton Ltd. [BHP-NYSE]. Since acquiring the property, K2 has completed  geochemical and geophysical surveys, geologic mapping, LiDAR, a WorldView 3 alteration survey and completed a 17-hole RC drill program focused on the Dragonfly and Newmont Zones. Highlights from K2’s drilling program include 6.68 g/t gold over 45.72 metres from surface at the Dragonfly Zone and 1.69 g/t gold over 41.15 metres from 44.20 metres depth at the Newmont Zone.
During the 2024 exploration season, K2 focused on grassroots exploration across its project portfolio while continuing to advance permitting at the Mojave Project through the completion of the Environmental Impact Statement. Exploration work focused on generating new exploration targets through surficial sampling, prospecting and geological mapping.
K2 recently said prospecting and sampling completed at the high-grade Gold Valley target returned the first ever visible gold from the Mojave Project.
K2’s Wels Project is located in Western Yukon, approximately 40 kiometres east of the community of Beaver Creek and 60 kilometres south of Newmont’s 4.0 million ounce Coffee deposit, within the traditional territory of White River First Nation. The land position consists of 350 contiguous Quartz Claims covering 7,200 hectares. Wels is underlain by metasedimentary and metavolcanic rocks of the White River Formation that have been intruded by a series of Triassic-gabbroic sills and Cretaceous granitic plugs.
K2’s 2023 reverse circulation drilling program at the Wels Project intersected gold in every drill hole, including the discovery of a new mineralized corridor at the Saddle South target.