Moneta Gold arranges $10 million bought deal financing

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Moneta Gold Inc. [ME-TSX, MEAUF-OTCQX, MOP-XETRA] said it has arranged a bought deal private placement offering with an underwriting syndicate that is expected to raise $10.08 million with proceeds earmarked for the Tower Gold project in Ontario.

The company said the offering will consist of 4.2 million common shares that qualify as flow-through shares under the Income Tax Act of Canada at $2.40 per share. In addition, the company has granted the underwriters an option to purchase an additional 840,000 flow-through shares under the same terms, potentially adding another $2.01 million to the proceeds. The option is exercisable for 48 hours prior to the closing of the offering, which is expected to occur around August 18, 2022.

On July 28, 2022 Moneta Gold shares rose 1.1% or $0.02 to $1.83 on volume of 169,110. The shares are currently trading in a 52-week range of $2.97 and $1.43.

Moneta Gold is an exploration company with a focus on advancing the 100%-owned Tower Gold project, which is located 100 kilometres east of Timmins, Ont.

The project is estimated to host an indicated resource of 4.3 million ounces. On top of that is an inferred resource of 7.5 million ounces.

Back in May, 2022, the company said it had launched a 70,000 metre 2022 drill program with the aim of improving confidence levels in the inferred resource by upgrading it to the indicated category. The company also said new exploration targets will also be tested at Halfway Lake, 55, Garrcon extensions, and the South Basin target, in areas outside of the current resource estimates.

The company said the 2022 drilling program will support a revised mineral resource estimate that will be the focus of a pre-feasibility study planned for 2023.

An updated preliminary economic assessment (PEA) encompassing the entire Tower Gold project is planned to be completed in the third quarter of 2022.

The Tower Gold Project is one of the largest undeveloped gold deposits in North America. Moneta has the largest land position in the eastern Timmins camp, the most prolific gold producing belt in Canada, and one of the top gold-producing areas in the world, with over 85 million ounces of gold produced to date.

The combined Golden Highway and Garrison areas, collectively the Tower Gold project, captures 17 kilometres of the Destor Porcupine Fault. The combined project hosts a NI 43-101-compliant resource spanning only 9.0 kilometres of the corridor and found primarily within the sedimentary host rocks along a southern splay of the Destor.

The Golden Highway area has no royalties. The Garrison gold area is subject to net smelter royalties, of which some can be acquired, averaging approximately 1.5%.

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