Minaurum Gold advances on $9.2 million financing news
Minaurum Gold Inc. [MGG-TSXV, MMRGF-OTC, 78M Frankfurt] has raised $9.2 million from a previously announced private placement of 36.8 million units priced at 25 cents per unit. The amount raised includes the exercise in full of the agents’ green shoe option to cover overallotments.
Each unit consists of one common share and one half of one common share purchase warrant, each of which entitles the holder to purchase one common share for 37 cents at any time on or before July 3, 2027.
Minaurum is an Americas-focused explorer concentrating on the high-grade 100% owned production-permitted Alamos silver project in southern Sonora, Mexico. It also holds a portfolio of district-scale projects also located in Mexico, The projects are located in three key regions: Southern Sonora, Oaxaca, and the Guerrero Gold Belt.
The company said it intends to use net proceeds from the offering for exploration expenditures at the Alamos project, for property maintenance and permitting costs, and for general working capital purposes.
Minaurum shares advanced on the news, rising 4.5% or $0.01 to 23 cents. The shares are currently trading in a 52-week range of 30 cents and 13 cents.
The flagship Alamos Silver covers 37,317 hectares in an area located 45 kilometres northwest of Pan American Silver Corp.’s [PAAS-TSX, NASDAQ] Alamo Dorado silver mine. Minaurum is exploring an epithermal vein system, which produced approximately 200 million ounces of silver from the first Spanish discovery around 1682 to the 1910-1920 Mexican revolution. That production was generated by three different mines. Various operators attempted to revive the mines during the 20th century. But production was mostly from the re-working of mine dumps.
Minaurum acquired historical data, including mine maps, sections and assay results from 40 holes (6,099 metres) drilled in multiple surface and underground exploration campaigns. The drilling occurred from the 1960s through to the early 1980s. Exploration was focused on the historic Promontorio and Minas Nuevas underground mines that closed in 1898 and 1912, respectively.
Minaurum has drilled 117 diamond core holes totalling 45,000 metres on 19 of the 26 vein zones discovered at the Alamos project from 2017 to 2024.
The average silver grade is 220 g/t silver, copper grade is 0.40%, lead grade is 0.96%, zinc grade is 2.05%, amounting to 365 g/t silver equivalent (AgEq).
Minaurum also completed preliminary metallurgical results at the Europa and Promotorio vein zones, which returned silver recoveries of 83.5% and gold recoveries ranged from 68.9% to 96.5%.
Next steps are to continue de-risking Alamos towards a tier one silver asset, with a maiden resource estimate for 2025.