New Gold, McEwen back Relevant Gold financing
Relevant Gold Corp. [RGC-CSE] has closed an oversubscribed $3 million non-brokered private placement with participation from New Gold Inc. (NGD-TSX, NYSE American) and Toronto-based mine financier Rob McEwen.
Proceeds from the private placement will be used to fund exploration activity in the company’s Golden Buffalo and Lewiston projects in Wyoming and for general corporate purposes, the company said.
The offering was oversubscribed and 12.3 million units have been issued, priced at 25 cents per unit, each of which consists of one common share and a half-share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share for 35 cents each for 36 months after the issue date.
In connection with the offering, New Gold raised its share position in the company to 9.9% from 7.0%. In addition, McEwen purchased four million units of the offering, a number that amounts to approximately a 6.4% stake in the company.
Relevant Gold CEO Rob Bergmann, and Chief Exploration Officer Brian Lentz each purchased 124,200 units.
Details of the financing were announced after the close of trading on June 8, 2023, when Relevant shares rose 2.6% or $0.005 to 19.5 cents. The shares are currently trading in a 52-week range of 46 cents and 15 cents.
In a press release on May 24, 2023, Relevant said the company’s entire project portfolio, including all of the South Pass and Bradley Peak gold camp areas, will be covered by a large-scale airborne geophysical survey being conducted by the Wyoming State Geological Survey and the U.S. Geological Survey.
Over the next four months, the company said magnetic and radiometric data will be collected over approximately 854,000 hectares in central Wyoming, including Relevant Gold’s entire 16,000 hectares of land holdings. “This survey provides significant value four our shareholders at no cost to Relevant Gold, drastically increasing our district-scale targeting potential while allowing us to focus our capital on drilling,’’ said Lentz. “We eagerly look forward to seeing what these airborne surveys reveal about the regional geological framework beneath the extensive cover that mantles the region,’’ he said.
Golden Buffalo is the company’s flagship project. It covers 3,884 hectares and is located approximately 60 kilometres southeast of Lander, west-central Wyoming. Drilling in 2022 returned 83.8 g/t gold over 1.0 metre, with anomalous gold reported in over 50% of drill holes. Rock chip samples assayed up to 160 g/t gold.
 “While Wyoming has seen significant historical mining, it is relatively underexplored and has not seen modern exploration like we are conducting at Golden Buffalo,’’ Lentz said. Relevant has said The Wyoming Province has similar age Archean rocks and structural terrain to the Abitibi gold belts in Canada. The company believes the similarity between the two regions provides a testing model for discovering new, large-scale deposits in Wyoming.