The company increased the private placement primarily due to significant demand from existing shareholders and intends to raise $11.25-million through the issuance of 25 million common shares of the company priced at 45 cents per share. The closing is anticipated in the coming days.
CEO Collin Kettell has increased his subscription to $4.5-million. As such, participation by management and insiders will make up roughly half of the financing. Following the close of this private placement, the company will have working capital in excess of $23-million that will underpin its plans to aggressively pursue exploration activities on its strategic landholdings along the Battle Mountain trend.
Collin Kettell, founder and CEO, stated: “As Nevada’s third-largest mineral claim holder and as one of Nevada’s most active exploration companies, Nevada King is built to be big in every way. I am excited to be announcing an increase in size of the financing, as well as an increase in my participation to $4.5-million. With active exploration and drilling programs under way on multiple targets within our Battle Mountain trend holdings, supported by the recent bolstering of our technical team and the increase in our working capital to approximately $23-million, Nevada King is poised for significant growth ahead. I am very pleased with how the company is now positioned and excited for our 2022 exploration season and beyond.”
Nevada King is the third-largest mineral claim holder in Nevada, behind Nevada Gold Mines (Barrick/Newmont) and Kinross Gold. Starting in 2016 through to the present day, the company has staked large project areas hosting significant historical exploration work along the Battle Mountain trend located close to current or past-producing gold mines.
These project areas were initially targeted based on their potential for hosting multimillion-ounce gold deposits and were subsequently staked following a detailed geological evaluation. District-scale projects in Nevada King’s portfolio include the 100%-owned Atlanta mine, located 100 km southeast of Ely; the Lewis and Horse Mountain-Mill Creek projects, both located between Nevada Gold Mines’ large Phoenix and Pipeline mines; and the Iron Point project, located 35 km east of Winnemucca, Nevada.
The Atlanta mine is a historical gold-silver producer with a NI 43-101-compliant, pit-constrained resource of 460,000 ounces of gold in the Measured and Indicated category (11 million tonnes at 1.3 g/t) plus an Inferred resource of 142,000 ounces of gold (5.3 million tonnes at 0.83 g/t gold).