Proceeds of the offering will be used primarily to advance activities related to the development and exploration a the Goldboro Gold Project in Nova Scotia, which is expected produce over 1.1 million ounces of gold over an 11-year open pit mine life according to an open pit feasibility study announced in December, 2021. Average production is forecast at 100,000 ounces annually at a grade of 2.26 g/t.
All in sustaining costs were pegged at US$849 an ounce.
On June 2, 2022, Signal Gold Inc.Â shares closed at 48 cents and now trade in a 52-week range of $1.05 and 44 cents.
The upsized offering will now consist of 3.65 million flow-through units priced at 56 cents each, and up to 8.07 million units priced at 49 cents per unit. Each flow-through unit will consist of one common share (a flow-through share) and one half of one common share purchase warrant to be issued on a non-flow-through basis.
Each unit will consist of one common share and one-half of one warrant. Each warrant will entitle the holder to purchase one common share of the company at 74 cents for 36 months after the offering closes.
The warrants will contain an acceleration clause whereby, after the expiration of the statutory hold period, if the common shares trade at a volume weighted average price of $1.24 or more for 10 consecutive trading days, the company can accelerate the exercise period to a period ending at least 30 days from the date that the notice of such acceleration is provided to the warrant holders
Signal is an exploration and development company with a focus on the Atlantic Canada provinces of Newfoundland and Nova Scotia. The company operates the Point Rousse gold project located in the Baie Verte Mining District. Point Rousse is comprised of the Pine Cove open pit mine, and fully-permitted Pine Cove Mill and tailings facility as well as the Stogâ€™er Tight and Argyle deposits.
Signal is also working is also developing theÂ Goldboro Project, a high-grade mineral resource with the potential to leverage existing infrastructure at the Point Rousse Project.
The recently announced feasibility study is based on maiden open pit probable reserves of 1.15 million ounces of gold and a mill capacity of 4,000 tonnes per day. The study pegged the initial capital cost at $271 million and life of mine sustaining capital at $63.1 million.
The study envisages the creation of 345 direct full-time jobs during construction and 215 full-time jobs will the mine is in operation, generating $226 million in federal and provincial tax payments.
The company also has a pipeline of organic growth opportunities, including the Viking and Great Northern Projects on the Northern Peninsula and the Tilt Cove Property on the Baie Verte Peninsula.