Scottie raises $6.5 million for B.C. gold projects
Scottie Resources Corp. [SCOT-TSXV] has raised $6.5 million from a bought deal private placement, with part of the proceeds earmarked for projects in British Columbia.
The private placement consists of 11.4 million shares that qualify as flow-through shares under the Income Tax Act (Canada) at 35 cents per flow-through share for gross proceeds of $4.0 million.
The placement also included 10.9 million common shares at 23 cents per HD share for gross proceeds of $2.5 million. Scottie said it has closed the financing, which generated gross proceeds of $6.5 million.
On February 16, 2023, Scottie shares were priced at 23.5 cents and currently trade in a 52-week range of 29 cents and 15 cents.
Scottie holds more than 60,000 hectares of mineral claims in the Stewart mining camp in British Columbia’s Golden Triangle region. Its portfolio is highlighted by a 100% interest in the Scottie gold mine property, which includes the Blueberry zone.
The Scottie gold mine is located on the Granduc Road, 35 kilometres north of Stewart, B.C., and north of Ascot Resources Ltd.’s [AOT-TSXV, OTVF-OTCQX] Premier project, which is in the process of refurbishing its mill in anticipation of production in the first quarter of 2023.
Scottie recently released drilling results from the Blueberry Contact Zone, which is located 2.0 kilometres north and northeast of the Scottie gold mine. Highlights included two intercepts of 34.5 g/t gold over 4.7 metres [SR22-186] and 130 g/t gold over 1.05 metres [SR22-222]. Both of the high grade intercepts occur at the lithological boundary between andesitic and siltstone units of the Hazelton Group, a near vertical, north-south oriented target known as the Blueberry Contact Zone.
Drilling in 2022 extended the strike length of the zone to over 1,450 metres and to a depth of 390 metres. The Blueberry Contact Zone is 100% owned and royalty free.
The Scottie Gold Mine project consists of the Scottie Gold Mine, Bow, Summit Lake and Stock claim groups. The project includes the past-producing Scottie Gold mine, which operated from 1981 to 1985, producing 95,426 ounces of gold from 183,147 tonnes of mineralization.
The Scottie mine was ultimately shut down due to a drop in the gold price combined with high interest rates.
While 13 distinct gold-bearing vein zones have been identified on the Scottie Gold Mine project, mine production was primarily from one vein.
The company said there are over 20 gold and/or silver bearing mineralized zones within the project area, and prior to the 2020 field season, only four had been drill tested.
The majority of historical drilling was done from underground, and therefore consisted of short holes with single targets – with very restricted drill pad locations. Recent exploration by Scottie has used the benefits of drilling from surface to target areas that were inaccessible with underground drill locations, and where possible to test multiple targets with individual holes.