Probe Gold announces $15 million bought deal
Probe Gold Inc. [PRB-TSXV, PROBF-OTCQB] has announced details of a $15 million bought deal private placement financing, with proceeds earmarked to fund drilling at its Novador and Detour gold projects in Quebec.
The company said it has struck a deal with an underwriting syndicate in connection with a private placement offering of 2.07 million non-flow-through common shares priced at $1.21 per share, generating gross proceeds of $2.5 million. The placement also consists of 6.3 million common shares that will qualify as flow-through shares with the meaning of the Income Tax Act (Canada) and, together with the non-flow-through shares of the company at a price of $1.98 per flow-through share for gross proceeds of $12.5 million.
The underwriters have granted the option to purchase that number of shares that would generate additional proceeds of $3.0 million. That option remains open at any time up to 48 hours prior to closing, which is expected to occur on June 19, 2024.
On Friday, Probe Gold shares eased 2.9% or $0.04 to $1.33 to trade in a 52-week range of $1.69 and $1.21.
Probe’s asset portfolio includes the Novador project, a district-scale land package consisting of 436 square kilometres. It represents one of the largest land holdings in the Val-d’Or mining camp. An updated preliminary economic assessment envisages annual gold production of 255,000 ounces over a 12.6-year life span at Novador and an initial capital expenditure of $602 million.  The project is advancing towards pre-feasibility, focusing on reducing the permitting timeline and continuing drilling for resource upgrade and expansion.
Since 2016, Probe Gold has been consolidating its land position in the Val d’Or East area in Quebec, with a district-scale land package of 685 square kilometres that represents one of the largest land holdings in the Val d’Or mining camp.
The Novador project is a sub-set of properties totaling 175 square kilometres hosting three past producing mines (Beliveau, Bussiere and Monique) and falls along three regional mine trends.
The Val d’Or properties include gold resources totaling 3.29 million ounces in the measured and indicated category and 1.41 million ounces in the inferred category along all trends and deposits.
Novador project gold mineral resources, slated for development, currently stand at 3.8 million ounces, measured and indicated and 1.4 million ounces of inferred material along the Monique, Pascalis, and Courvan gold trends deposits.
The company is advancing its discovery-stage regional exploration work at Val d’Or, which includes prospecting and soil geochemistry on Novador, Croinor, McKenzie Break and Megiscane-Tavernier properties, and a 10,000-metre exploration drilling progam on the Novador’s Courvan and Pascalis Trends.
The company recently released final results from the winter 2024 Courvan Gold Trend drill program at Novador. The company said results from 42 new drill holes and three deepened holes, covering 12,000 metres have returned significant gold intercepts from surface to a vertical depth of 300 metres at the Courvan deposits.
Drilling east of the former Bussiere mine returned the best intervals, with 1.1 g/t gold over 133.0 metres and 3.2 g/t gold over 19 metres. An additional 14,500 metres have been drilled at Novador’s Monique deposit during the 2024 Winter program. Results will be released when available.
Detour Quebec is an early-stage project that is located along the lateral extensions of the Detour Lake mine. There have been recent high-grade discoveries in Zone 58N, Fenelon/Tabasco, Area 51 and Martiniere/Bug Lake.