StrikePoint Gold Inc. [SKP-TSXV; STKXF-OTCQB] shares were active Wednesday July 10 after the company said it has upsized a previously announced non-brokered private placement to accommodate demand from existing shareholders. Proceeds are earmarked for the company’s Willoughby gold property, located in northwest British Columbia’s Golden Triangle region.
The company said it has increased the size of the offering by $500,000 to $2 million. The offering will now consist of 6.87 million flow-through units at 16 cents per unit and 8.2 million non-flow through units at 11 cents each. Each unit consists of one share and one share purchase warrant exercisable for 36 months at an exercise price of 20 cents.
StrikePoint shares were unchanged at 12.5 cents on volume of 2.24 million. The shares are trading in a 52-week range of 11 cents and 24 cents.
StrikePoint is a gold exploration company. It controls two advanced stage exploration assets in B.C.’s Golden Triangle area, including the past producing Porter silver project and the Willoughby gold property.
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. Located 15 km 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.
Red Mountain received its Environmental Assessment Certificate in October 2018 and federal approval in January 2019.
StrikePoint has said Red Mountain is the closest analogue to Willoughby. However, it has qualified that statement by saying there is no guarantee that similar results will be achieved on its own property.
Like Red Mountain, mineralization is focused along the contact with Jurassic-aged Goldslide intrusive rocks, the company has said.
“StrikePoint is very pleased with the high demand of investor interest for the offering and the company is now well positioned to execute a more aggressive exploration program at the high-grade gold Willoughby property,” said StrikePoint CEO Shawn Khunkhun in a press release.
StrikePoint acquired the Willoughby property from ArcWest Exploration in March, 2019. Under the agreement, Strikepoint will hold 100% of the Willoughby property for an $85,000 cash payment and the issuance of 3.0 million shares. Sojourn Exploration will retain a 1.5% net smelter return royalty, which can be reduced to 0.5% for an additional $1 million cash payment.
Back in the early 1990s, mineralization was defined over a 1 km 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 g/t 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 Willoughby Property provides the opportunity for exploration without significantly expanding established camp infrastructure or other overhead costs,” StrikePoint said.
The site is drill ready and serviceable via the company’s existing camp at the Porter Project. An effort to secure exploration permits that was begun by the previous owner, is continuing, the company said.