St. James Gold up 23% on financing news

Share this article

St. James Gold Corp. [LORD-TSXV; LRDJF-OTCQB; BVU3-FSE] said Thursday May 13 that it has struck a deal with an underwriting syndicate in connection with a brokered private placement of up to 2.17 million units at $3 per unit, which is expected to raise $6.51 million.

Each unit will be comprised of one common share and one common share purchase warrant. Each warrant is good to buy one additional share at an exercise price of $3.90 for three years.

The company granted the underwriters the option to increase the size of the offering by up to 500,000 units, potentially raising additional proceeds of $1.5 million.

St. James shares jumped 23.2% or 82 cents to $4.35. Shares are currently trading in a 52-week range of $6.50 and $0.055.

St James holds an option to acquire a 100% interest in 28 claims covering 1,730 acres in the Gander district in north-central Newfoundland adjacent to New Found Gold Corp.’s [NFG-TSXV] Queensway Project, and an option to acquire a 100% interest in 1,730 acres in central Newfoundland adjacent to Marathon Gold Corp.‘s [MOZ-TSX; OTC-MGDPF] Valentine Lake Gold Project.

Back in April, 2020, Marathon released a pre-feasibility study for the Valentine Lake Project. It envisages an open pit mining operation over a 12-year mine life with average gold production of 175,000 oz/year in years 1-9 from the processing of high-grade mill feed.

St James recently signed an option and joint venture agreement to acquire up to a 100% interest in the Florin gold project covering nearly 22,000 contiguous acres in the historic Tintina gold belt in the Yukon, subject to regulatory approval.

The company intends to use net proceeds of the offering to close the initial payment on the Florin project acquisition. Proceeds will also be used to finance drilling on the Florin gold project and Newfoundland properties.

The Florin Gold project contains an inferred resource of 2.47 million oz gold contained in 171 million tonnes of 0.45 g/t with a cut-off of 0.30 g/t at a gold price of US$1,650/oz.

The Florin property is 55 km northwest of Mayo and 130 km east of Dawson City.

 


Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the

NEWSLETTER

Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.