Maritime raising $10 million for Newfoundland projects
Maritime Resources Corp. [MAE-TSXV] has announced plans to raise up to $10 million from a private placement offering of up to 8.85 million common shares to be issued for $1.13 each. The company said net proceeds will be used to fund exploration and development at the company’s mineral projects in Newfoundland and Labrador, and to repay the balance of the company’s $5 million principal amount of senior secured notes.
The company said it has entered into an agreement with a syndicate of agents in connection with the proposed offering. The agents will be granted the option to sell up to an additional 1.32 million offered securities at the issue price for additional proceeds of up to $1.5 million. That option is exercisable in whole or in part at any time up to 48 hours before the closing date.
On Friday, Maritime shares eased 5.5% or $0.07 to $1.19. The shares trade in a 52-week range of $1.45 and 35 cents.
Maritime Resources holds a portfolio of assets that include two gold processing facilities, Pine Cove and Nugget Pond, assets that are located near the town of Baie Verte and present opportunities for toll milling, the company has said. Pine Cove is a fully operational 1,300 tonne-per-day gold facility.
The company also holds a 100% interest in the Green Bay property near Springdale Newfoundland and Labrador. The property hosts the past-producing Hammerdown gold mine, the Orion gold deposit, and Lochinvar precious metals deposit.
The Hammerdown Mine was last operated by Richmont Mines between 2000 and 2003, producing 143,000 ounces of gold at an average grade of 15.7 g/t through a combination of narrow vein, open pit and underground mining. The ore was processed at the Nugget Pond mill. Richmont was acquired by Alamos Gold Inc. [AGI-TSX, NYSE] in November, 2017.
Mining concluded in 2004 due to low gold prices with mineralization remaining, although uneconomic at the time. But the company is planning for a 2025 phased startup to generate cash flow.
Based on a 2022 technical report for the project, Hammerdown contains proven and probable reserves of 272,000 ounces of gold at 4.46 g/t, including proven reserves of 106,000 ounces of gold grading 5.96 g/t and probable reserves of 166,000 ounces of gold grading 3.95 g/t. The 2022 feasibility study envisages annual production of 50,000 ounces of gold annually.
Maritime controls over 439 square kilometres of exploration land, including the Green Bay, Whisker Valley, Gull Ridge and Point Rousse projects. “Following the successful grade control program completed earlier this year, additional drilling [at Hammerdown] has targeted a new orientation in gold trends south of the historic underground mine workings,’’ the company said in a recent press release. “This north-south zone begins at surface and lies within the planned open pit footprint with results demonstrating high grade gold mineralization across significant widths and remains open at depth,’’ the company said. “This presents an attractive opportunity for early development and cash flow by now having all permitting completed for the Hammerdown gold project and our Pine Cove mill now fully operational.’’