Scorpio Gold raising $3.5 million for Nevada gold project
Scorpio Gold Corp. [SGN-TSXV] said it intends to complete a non-brokered private placement for total proceeds of $3.5 million. Proceeds are earmarked for exploration expenditures at the company’s Manhattan district project as well as for corporate and general working capital purposes.
It said the private placement will consist of up to 43.75 million common shares, priced at $0.08 per share.
Scorpio holds a 100% interest in two past-producing projects, the Manhattan district and the Mineral Ridge mine. Both are located in the Walker Lane trend in Nevada. The Manhattan district covers about 4,780 hectares and consists of the advanced exploration stage Goldwedge mine, with a 400-ton-per day gravity mill and four past producing pits that were acquired from Kinross Gold Corp. (K-TSX, KGC-NYSE) in 2021.
“The Manhattan district represents an exciting late-stage exploration opportunity, with over 100,000 metres of historic drilling, significant resource potential, and valuable permitting and water rights,” the company has said.
Last year, the company said it made significant progress at the Manhattan District, including a doubling of the land position, and encouraging drill results. The key highlight from drilling in 2024 is 1.69 g/t over 55.7 metres, an undercut of the Goldwedge underground, with the goal of one open pit resource between the historic Goldwedge and Manhattan mines. Concurrent to drilling, Scorpio compiled a historic database covering the entire Manhattan District. That includes a comprehensive modern drilling database which is expected to drive the maiden resource estimate at Manhattan and future planning and exploration in the district.
Scorpio was in the news last year when it agreed to amalgamate with Altus Gold Corp., a private company with an option to acquire a mineral exploration property in Esmeralda County, Nev. Known as the Northstar property, it lies adjacent to Scorpio Gold’s Mineral Ridge Mine.
Scorpio produced over 222,440 ounces of gold at Mineral Ridge between 2010 and until December 31, 2020. Mining was suspended in 2017 due to an uneconomic strip ratio for the heap leach operation.
However, Scorpio has continued to draw-down from existing heaps, between 150 ounces and 300 ounces per month since that time. Back in January, 2018, the company released an updated feasibility study outlining positive economics for processing the residual heap leach material and mining higher grade material in the existing pits. The study envisages 7.5 years of additional mi ne life and 250,500 ounces of life of project gold production.
On Friday, Scorpio shares eased 5.5% or $0.005 to $0.085. The shares trade in a 52-week range of 33 cents and $0.085.