Sitka gold raises $4.7 million for Yukon exploration
Sitka Gold Corp. [SIG-CSE, SITKF – OTCQB, 1RF-FSE] has raised $4.7 million from an oversubscribed private placement financing and will use the proceeds to fund exploration on its Yukon projects.
“The main focus this year will be aggressive development of our new Blackjack Zone gold discovery at the RC Gold Project, where we are currently conducting a 10,000-metre diamond drill program with the goal of advancing this exceptional discovery toward an initial resource estimate,” said Sitka CEO Cor Coe.
“A drill rig and contractor have also been secured to complete up to 5,000 feet of drilling on the Alpha gold property in Nevada,” Sitka said in a press release. Drilling is expected to begin there in the second quarter of 2022.
The private placement consisted of 20.5 million flow-through units priced at 17 cents each and 8.6 million non-flow-through units priced at 14 cents per unit.
Each non flow through unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to purchase an additional share at 23 cents for 24 months from the date of issuance.
Each flow-through unit consists of one flow-through common share and one half of a warrant.
The offering, which was oversubscribed by $436,560,  consisted of a lead order of $2 million from funds managed by Sprott Asset Management LP.
Sitka has an option to acquire a 100% interest in the RC, Barney Ridge, Clear Creek and OGI properties in the Yukon and the Burro Creek gold property in Arizona. Its asset portfolio also includes a 100% interest in its Alpha gold property in Nevada, its Mahtin gold property in Yukon and Coppermine River project in Nunavut.
The RC Gold 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 hear of Yukon’s Tintina Gold Belt and the Tombstone Gold Belt.
It is the largest land package strategically positioned mid-way between Victoria Gold Corp.’s [VIT-TSXV] Eagle Gold Mine and Golden Predator Mining Corp.’s [GPY-TSXV] Brewery Creek Gold Mine. The RC Gold Project land package consists of five underlying properties namely, the RC, Bee Bop, Mahtin, Clear Creek and Barney Ridge properties.
Sitka Gold inherited a wealth of historical and current data from those properties form work spanning 40 years. Recent exploration work and the compilation of historical data have defined several mineralized zones with both bulk tonnage, intrusion-related gold deposit targets and high-grade, vein and breccia-hosted gold targets.
The RC Gold Project has a common border with Victoria Gold’s Clear Creek property at its western boundary.
On June 8, 2022, Sitka Gold shares closed at 11 cents and currently trade in a 52-week range of 20 cents and $0.08.