Sprott backs 1911’s $3.9 million Manitoba gold financing
1911 Gold Corp. [TSXV-AUMB] has upsized a previously announced private placement financing and now expects to raise $3.9 million. That’s up from the original target of $3.5 million, which included a lead investment from financier Eric Sprott. Proceeds are earmarked for the company’s projects in Manitoba.
1911’s portfolio includes 63,000 hectares within and adjacent to the Archean Rice Lake greenstone belt in Manitoba. It also owns the True North mine and mill complex at Bissett, Man. Other assets include the Apex gold project near Snow Lake, Man. And Denton-Keefer project near Timmins, Ont.
The offering is expected to consist of a combination of the following:
- Non-flow through units priced at $0.06 per unit, each consisting of one common share and one warrant exercisable to purchase one share at 10 cents for 24 months from the closing date, likely December 22, 2023.
- Flow-through units priced at $0.07 per FT unit, each FT unit consists of one share qualifying as a flow-through share and one flow-through warrant that can be used to purchase one share at 10 cents for 24 months after closing.
- Units issuable to residents of Manitoba at $0.097 per FT unit. Each Manitoba unit will consist of one FT share and one FT warrant.
“We have worked diligently during 2023 to develop a longer-term strategy for our Rice Lake property in Manitoba,’’ said 1911 President and CEO Shaun Heinrichs. “We have leveraged our infrastructure to complete several key transactions in 2023 to support ongoing maintenance of the site and significantly reduce our holding costs,’’ he said.
“We are now moving forward with our goal of advancing 1911 Gold towards production with the potential for multiple ore sources within the Rice Lake property.
Key components of the company’s strategy include:
- A complete detailed review of the current National Instrument [NI-43-101] resource for the True North underground mine, currently based on US$1,400 an ounce gold.
- Review additional areas of gold mineralization outlined in historical drilling at the True North underground mine, which have significant additional resource potential accessible from existing infrastructure above the current resource and reserves.
- Conduct a comprehensive review of the resource potential of historic resources and past producer on the property (including the Central Manitoba and Ogama Rockland projects), including compilation of outstanding assay results from the 2022 drill program.
- In addition, Gary O’Connor, former President and CEO of Moneta Gold Inc. [TSX-ME, OTCQX-MEAUF], has joined 1911 as a key technical advisor to assist in executing this strategy. O’Connor is an experienced geologist with over 35 years in the mining industry.
“With the investment from Eric Sprott and with Gary O’Connor joining as a technical advisor, we have the resource required to execute on this strategy and complete the steps necessary to optimize the True North underground mine and evaluate near mine opportunities,’’ said Heinrichs.
1911 shares were unchanged at $0.085 and trade in a 52-week range of 18.5 cents and $0.065.