Rackla raising $4.0 million for Yukon-NWT gold drilling
Rackla Metals Inc. [RAK-TSXV] said it is proposing to complete a non-brokered private placement financing that is expected to raise $4.0 million. Proceeds are earmarked for exploration and drilling on the company’s Tombstone Gold Belt properties in the Selwyn Basin.
In a press release, the company said the financing will be a combination of a hard-dollar offering priced at 15 cents per unit, a flow-through unit offering priced at 17 cents per unit and a charity flow-through unit offering priced at 21 cents per unit.
It said each unit will consist of one common share of the company and one warrant, each of which will entitle the holder to purchase one additional common share at a price of 20 cents for one year following the offering closes. Each common share to be issued in the flow-through offering and charity flow-through offering will quality as a “flow-through share” within the meaning of the Income Tax Act (Canada).
Details of the financing plan were announced after the close of trading on April 29, 2024, when Rackla shares were priced at 17 cents and trade in a 52-week range of 39.5 cents and $0.08.
In past 12 months, Rackla has assembled a property portfolio that covers 59,000 hectares in the Tombstone Gold Belt, part of the Tintina gold province that extends through more than 1,000 kilometres of the north American Cordillera that includes Alaska, Yukon, and NWT.
Rackla Metals President and CEO Simon Ridgway has said his interest in the area was peaked by Snowline Gold Corp.’s [SGD-CSE, SNWGF-OTCQB] recent gold find at the Valley occurrence on the Rogue property in eastern Yukon. He said the Snowline discovery has demonstrated the potential for significant Reduced Intrusion-related gold system (RIRGs) deposits in the eastern part of the Tombstone Belt
Kinross Gold Corp.’s (K-TSX, KGC-NYSE) Fort Knox mine in Alaska and Victoria Gold Corp.’s [VGCX-TSX] Eagle mine in the Yukon are producing from RIRGS deposits. The Brewery Creek mine in the Yukon was also a RIRGS producer. “These are typically very large deposits,’’ Ridgway said.
To help with exploration effort, Ridgway has gathered a team of geologists, led by the company’s Vice-President Exploration, Scott Casselman. The team has been working from a camp located about six hours by road northeast of Ross River, Yukon. Proximity to the Canol Road and Macmillan Pass airstrip offers efficient access to the various project sites.
Ridgway said the Rackla team has used its historic experience in the district to trace the geology and geophysics 90 kilometres southeast of the Snowline discovery across the Yukon-NWT borders.