StrikePoint Gold Inc. [SKP-TSXV, STKXF-OTCQB] said Friday it has raised $4.5 million from a non-brokered flow through private placement of 18.05 million flow-through units priced at 25 cents each. Private placement proceeds will be used to fund exploration at the companyâ€™s Porter and Willoughby properties, which are located in the Golden Triangle of northwest British Columbia.
Under the terms of the private placement, each flow-through unit will consist of one flow-through common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share of the company at an exercise price of 35 cents per share for a period of 18 months.
StrikePoint shares moved lower on the news, easing 2.5% or $0.005 to 19.5 cents. The shares are currently trading in a 52-week range of 32.5 cents and $0.085.
â€œWe are well positioned as the top explorer in the Golden Triangle with a record treasury exceeding $10 million and have commenced exploration at both our high-grade Porter silver and Willoughby gold-silver projects, located east of the mining town of Stewart, B.C,â€™â€™ said Strikepoint CEO Shawn Khunkhun.
â€œOver 8,000 metres of drilling will be completed using two drill rigs, stepping out from previous high-grade intercepts or stopes as well as testing multiple new exploration targets.â€™â€™
Willoughby and Porter are both advanced staged projects.
Willoughby is adjacent to the Red Mountain underground gold/silver project which is being developed by Ascot Resources Ltd. [AOT-TSXV, AOTVF-OTCQX] following its recent acquisition of IDM Mining Ltd. [IDM-TSXV, IDMMF-OTCQB]. Located 15 kilometres northeast of Stewart, Red Mountain ranks among the most advanced gold projects in Canada and contains a measured and indicated resource of over 2.0 million ounces of gold.
StrikePoint acquired the Willoughby Property from ArcWest Exploration in March, 2019.
Back in the early 1990s, mineralization was defined over a one-kilometre strike length on the Willoughby property. That was achieved via the completion of 4,625 metres of diamond drilling. Historic drill results have included 20.5 metres, grading 24.99 g/t gold and 184.22 grams silver, as well as 11.7 metres of 40.11 g/t gold and 109 g/t silver, both from the North zone target.
At the Main zone target, historic drilling returned 13 metres, grading 13.37 g/t gold and 63.43 g/t silver.
Another five target zones on the property have all returned significant gold and silver grades in drill core or surface channel samples.
The Porter Project hosts two historically producing silver-rich vein systems: the Silverado and Properity/Porter Idaho. They are located over two kilometres apart, outcropping on both sides of Mount Rainey, overlooking the two of Stewart.
Khunkhun said the company has two primary objectives at Porter. One is to step out from high-grade silver mineralization mined in historic stopes at the Prosperity/Porter Idaho and Silverado Mines. The second is to drill initial holes into the â€œBig Flex,â€ targeting the structural intersection of the two prolific vein systems, which are projected to occur under the ice sheet where extensive ice recession has occurred adjacent to the historic Silverado mine.
At Willoughby, the company will continue to step out drill from multiple previous high-grade gold-silver intercepts, building on the technical breakthrough that the company achieved during the 2020 field season.