Newcore raises $5.5 million from upsized financing
Newcore Gold Ltd. [NCAU-TSXV, NCAUF-OTCQX] has raised $5.5 million from an upsized private placement offering and will use the proceeds to fund exploration and development at the company’s 100%-owned Enchi Gold Project in Ghana, West Africa. That’s up from an earlier $5.0 million target.
The offering consisted of 18.9 million units priced at 29 cents each. Under the terms of the offering, each unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 40 cents at any time on or before September 26, 2025. The units were sold under the LIFE offering to purchaser pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus exemptions.
In addition to closing the LIFE offering, the company has also closed a concurrent non-brokered private placement financing under which the company issued 151,638 units at 29 cents each, generating gross proceeds of $43,975.
Newcore shares advanced on the news, rising 3.08% or $0.01 to 33.5 cents. The shares trade in a 52-week range of 38.5 cents and $0.095.
The 248-square kilometres Enchi land package covers 40 kilometres of Ghana’s prolific Bibiani Shear Zone, gold belt which hosts several 5.0-million-ounce gold deposits, including Asante Gold Corp.’s [ASE-CSE, ASGOF-US OTC, ASG-GSE, 1A9-Frankfurt] Chirano mine, which is located 50 kilometres to the north.
Enchi is situated on the same regional structure as Chirano with comparable geology, alteration and mineralization. The Chirano zones are similar to those found at Enchi, including known zones Sewum, Boin, Nyam and Kwakyekrom. Like Chirano, the zones at Enchi have broad lower grade gold at surface with higher grade core structure extending to depth.
The Enchi project currently hosts an indicated mineral resource of 743,500 ounces of gold at 0.55 g/t and an inferred resource of 972,000 ounces at 0.65 g/t. The company has said the property remains substantially underexplored, with several high priority geochemical and geophysical anomalies yet to be tested.
The company has established a high-grade underground resource of 135,900 gold ounces at an average grade of 2.42 g/t gold.
Newcore previously released a preliminary economic assessment which highlights the potential for a technically simple, open pit and heap leach operation, utilizing contract mining.
The PEA envisaged annual gold production in years two through five of 104,171 ounces of gold., with 983,296 ounces being recovered over a mine life-span of 11 years.
The PEA was based on a pit constrained, inferred mineral resource of 70.4 million tonnes, grading 0.62 g/t gold, containing 1.4 million ounces of gold.