Spanish Mountain raising $5.0 million for B.C. gold project
Spanish Mountain Gold Ltd. [SPA-TSXV, S3Y-FSE] has announced details of a brokered private placement that aims to raise up to $5 million. The company said it plans to use part of the proceeds to advance the company’s 100%-owned multi-million-ounce Spanish Mountain Gold Project, where the company has said it is moving towards construction of the next gold mine in the Cariboo Gold Corridor, British Columbia.
The company said it plans to complete a new preliminary economic assessment, conduct additional exploration drilling on the Spanish Mountain Gold project and property to test new targets, and expand the understanding of the mineral endowment associated with the project.
The private placement will consist of up to 18.5 million units priced at 13.5 cent each, generating gross proceeds of up to $2.5 million, as well as up to 16.13 million flow-through share units of the company, and together with the units, at a price of 15.5 cents per flow-through unit, for gross proceeds of $2.5 million from the sale of the flow-through units.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a price of 18 cents per warrant share, for 24 months from the closing date of the offering. Each flow-through unit will consist of one common share to be issued as a flow-through share within the meaning of the Income Tax Act (Canada), and one half of one common share purchase warrant. Each flow-through warrant will entitle the holder to acquire one additional common share at a price of 23 cents per flow-through warrant share, for 24 months from the closing date of the offering.
The company will grant to the agent the option to sell up to an additional $1 million of gross proceeds in any combination of offered securities. That option is exercisable in full or in part for up to 48 hours prior to closing, which is expected to occur by November 13, 2024.
Spanish Mountain shares eased 3.3% or $0.005 to 14.5 cents in early trading Wednesday. The shares trade in a 52-week range of 28.5 cents and 10.5 cents.
In a press release on October 16, 2024, the company said it completed 11 NQ-sized diamond drill holes covering 5,590 metres of drilling, positioned along the northwestern edge of the deposit. Results from the first reported hole in this program, 24-DH-1267, successfully intercepted its intended targets, confirming near surface mineralization and providing valuable information to improve the understanding of mineralization extensions on three horizons and their associated controls. Initially the program consisted of nine holes. However, with encouraging mineralization identified during core logging in the first nine holes, and good weather, the program was expanded.
Highlights include the upper intercept in 24-DH-1267, which intersected 80.0 metres of grade 0.44 g/t from 53 metres to 133 metres, including 22.5 metres of grade 0.74 g/t from 110.50 metres to 133.0 metres.