Snowline Gold Corp. [SGD-CSE, SNWGF-OTCQB] has announced details of a $15 million bought private placement of flow-through shares. Proceeds are earmarked for the company’s Rogue project in the Canadian Yukon.
The financing is being announced after the company recently released assay results from one of the best holes ever drilled for gold in the Yukon.
“We are pleased to see the increased interest in our Rogue project following our initial results from the ongoing 2023 exploration season said Snowline CEO and director Scott Berdahl.
“This raise, which brings in funds at a significant premium to market value, enhances are team’s ability to systematically explore our Valley discovery, the broader Rogue project and additional targets on our extensive Yukon-focused exploration portfolio.
“Combined with our current treasury, we are well positioned to focus on building value through discovery for multiple drill seasons.’’
The company said a syndicate of underwriters has agreed to purchase on a bought deal private placement basis, 2.0 million charity flow-through shares of the company for $7.50 per share. Each charity flow-through share will qualify as a flow-through share with the Income Tax Act (Canada). The offering is expected to close by September 6, 2023.
Details of the financing were released after the close of trading on August 15, 2023, when Snowline shares closed at $5.74. The shares are currently trading in a 52-week range of $6.07 and $2.08.
Snowline Gold is a Yukon Territory-focused gold exploration company with a seven-project portfolio covering 330,000 hectares. The company is exploring the 72,000-hectare Einarson and Rogue gold projects, which are located in the highly prospective, but underexplored Selwyn Basin.
Snowline’s project portfolio is within the Tintina Gold Province, which hosts multiple million-ounce-plus gold mines and deposits, including Kinross Gold Corp.’s (K-TSX, KGC-NYSE) Fort Knox mine, Newmont Corp.’s, [NGT-TSX, NEM-NYSE] Coffee deposit, and Victoria Gold Corp.’s [VGCX-TSXV] Eagle Mine.
The company says the geological setting and style of mineralization at Rogue’s Valley Zone indicate the presence of a bulk tonnage gold target, with similarities to Kinross’s Fort Knox Mine and Victoria Gold’s Eagle Mine.
The project is considered by the company to have district-scale prospectivity for reduced-intrusion related gold systems.
In a press release on August 3, 2023, the company said ongoing drilling at the Valley target on the Rogue project had intersected 553.8 metres of 2.5 g/t gold from surface in hole V-23-039, including 5.0 g/t gold over 132.0 metres, along with robust mineralization at depth at Valley.
The company said the latest results confirm and improve upon strong grade and continuity of well mineralized, near-surface corridor on the Valley target, while identifying a new zone over 2.0 g/t gold mineralization at depth along the western margin of the intrusion.