Scottie Resources Corp. [SCOT-TSXV] has arranged a non-brokered private placement of up to $2.3 million, with proceeds earmarked for exploration on the company’s mineral properties.
They include the formerly producing high-grade Scottie gold mine, located on the Granduc Road, 35 kilometres north of Stewart, B.C., and north of Ascot Resources Ltd.’s [AOT-TSXV, AOTVF-OTCQX] Premier project, which is in the process of refurbishing its mill in anticipation of production in the first quarter of 2023.
The private placement will consist of 13.5 million units priced at 17 cent per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at a price of 25 cents for a period expiring two years after the closing date.
If the closing price of the common shares is equal to or greater than 32 cents for a period of 10 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants by giving written notice to the holders, telling them that the warrants will expire on the date that is not less than 30 days from the notice date.
On September 8, 2022, Scottie shares closed unchanged at 18 cents and now trade in a 52-week range of 25 cents and 15 cents.
The company said it has granted an aggregate of 2.35 million stock options to certain directors, officers and consultants to the company at an exercise price of 18 cents per option, expiring five years from the date of issuance.
News of the financing comes just days after the company released drilling results from the Blueberry Contact Zone, which is located 2.0 kilometres north and northeast of the Scottie gold mine. Highlights included intercepts of 13.3 g/t gold over 12.5 metres, including 37.5 g/t over 2.5 metres. Drilling this year will aim to test the strike of the zone up to 1.4 kilometres and to a depth in excess of 400 metres.
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.