Probe Metals raises $10 million, launches PEA in Quebec

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Probe Metals Inc. [PRB-TSXV; PROBF-OTCQB] has launched a preliminary economic assessment (PEA) on its 100%-owned Val d’Or East Project in Val d’Or, Quebec. The company said the PEA, which is expected to begin immediately, and be completed by the first half of 2021, will provide a base case assessment for the further development of the project.

In a separate news release, the company said it has raised just over $10 million from a previously announced non brokered private placement, consisting of 2.5 million flow-through units at $2.80 each and 1.9 million hard dollar units priced at $1.60 each.

Each of the flow-through and hard dollar units consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share of Probe for two years after closing for $2.10. Net proceeds are earmarked for the company’s Quebec projects.

“Val d’Or East has achieved a critical mass with respect to resource size and, with the outlook on gold improving in 2021, we feel that now is the optimal time to advance the project into economic studies,” said Probe President and CEO David Palmer.

“The PEA will provide investors with a much more detailed view of what mining scenario could look like at Val d’Or East and provide a better insight into the value of the project,’’ he said. “We have grown from a gold resource of approximately 770,000 ounces to over 3.4 million ounces, and with another year of drilling under our belts our next updated resource will provide us with a solid base for the PEA. We are excited to being moving the project towards production and look forward to continue adding value through both development and exploration in 2021.”

Probe shares were largely unchanged on the news, rising 0.59% or $0.01 to $1.70. The shares are currently trading in a 52-week range of $1.96 and 55 cents.

Probe Metals was formed as a result of the sale of Probe Mines Ltd. to Goldcorp Inc. in March 2015. Newmont Goldcorp Corp. [NGT-TSX, NEM-NYSE] currently has a 12% stake in Probe Metals.

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