Sitka closes oversubscribed Yukon gold financing

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Sitka Gold Corp. [SIG-CSE, SITKF-OTCQB, FSE-1RF] has raised $2.1 million from an oversubscribed private placement financing that will be used to fund exploration and related programs on its Yukon gold properties.

The amount raised from the private placement is well ahead of the previous $1.25 million target. However, the company said the offering was oversubscribed due to strong investor demand.

It consisted of 11.7 million flow-through units priced at 18 cents per unit. Each flow-through unit consists of one flow-through common share and one half of one common share purchase warrant. Each warrant entitles the holder to buy an additional common share for 36 cents for two years from the date of issuance.

News that the financing has closed came after the end of trading on November 22, 2023, when Sitka shares closed at 15.5 cents. The shares are currently trading in a 52-week range of 19 cents and $0.085.

Sitka is a diversified company that is advancing new gold discoveries in Nevada and the Canadian Yukon

The company’s flagship asset is the RC Gold project, which is located 100 kilometres east of Dawson City, Yukon, in the Tombstone Gold Belt, a region that includes Victoria Gold Corp.’s [TSX-VGCX] Eagle and Brewery Creek mines, Banyan Gold Co.’s (TSXV-BYN) Aurmac project, and Snowline Gold Corp.’s [CSE-SGD, OTCQB-SNWGF] Valley discovery.

The company is currently placing 90% of its effort into the RC project, where the company is working to add significantly more ounces of gold to a pit constrained inferred resource of 1.34 million ounces of gold (61.1 million tonnes of 0.68 g/t gold) in two near surface/on surface zones known as Blackjack and Eiger.

Sitka said it has completed approximately 6,500 metres of additional drilling in 16 holes at RC Gold since the mineral resource estimate was announced. Results are still pending for two drill holes that were completed in mid-September.

Sitka’s RC project consists of a 376 square kilometre contiguous district-scale land package located in the newly road accessible Clear Creek, Big Creek and Sprague Creek districts in the heart of the Tombstone Gold Belt.

The land package consists of five underlying properties namely, the RC, Bee Bop, Mahtin, Clear Creek and Barney Ridge properties. While the project contains several high priority intrusion-related gold targets, Sitka has focused its efforts on the underlying Clear Creek property where it has identified a large 500-metre by 2,000 metre-corridor, containing the Blackjack, Saddle and Eiger zones.

Sitka Chairman and CEO Corwin Coe has said he believes RC Gold has the potential to host several multi-million-ounce gold deposits. It is as view that was reinforced when the company released the new drilling results from an exploration program that began earlier this year.

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