Newcore raising up to $5 million for Ghana gold project
Newcore Gold Ltd. [NCAU-TSXV, NCAUF-OTCQX] has arranged a non-brokered private placement financing under the listed issuer financing exemption, whereby the company aims to raised up to $5.0 million.
Proceeds of the offering will be used to fund exploration and development activities at the company’s 100%-owned Enchi Gold Project in Ghana, West Africa.
The offering will consist of 33.3 million units priced at 15 cents per unit. Each unit will consist of one common share and one half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 20 cents per share for 12 months following completion of the offering, which is expected to occur by June 28, 2023.
The securities offered under the listed issuer financing exemption will not be subject to a hold period, in accordance with applicable Canadian securities laws.
The 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.
On June 12, 2023, Newcore shares closed at 16.5 cents and currently trade in a 52-week range of 36 cents and 15 cents.
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.
The resource estimates do not include 38,000 metres of drilling, which focused on greenfield discoveries and high-grade sulphide mineralization at depth, highlighting the multi-million-ounce potential of the 216 square kilometre district scale property.
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.
The company said only 20,195 metres of drilling was included in the estimate.