Talisker upsizes financing deal, shares rise 13%

Share this article

Talisker Resources Ltd. [TSX-TSK, TSKFF-OTCQB] said Thursday it has upsized a previously announced private placement offering and now expects to raise $7.3 million, up from the original $6 million target.

Under an agreement with co-lead agents Sprott Capital Partners LP and PI Financial Corp., the upsized offering will consist of the following combination:

  • Up to 18.7 million units priced at 16 cents per unit, generating gross proceeds of $3 million.
  • Up to 24 million common shares issued on a flow-through basis at 18 cents each, generating gross proceeds of $4.32 million.

The company has granted the agents an option to sell up to an additional 15% of the number of offered securities issued in the upsized offering. That option is exercisable in whole or in part, at any time up to three business days prior to closing, which is expected to occur on August 11, 2022.has launched

Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one common share at an exercise price of 24 cents for 2.5 years from the date of issuance.

Gross proceeds from the sale of the flow-through shares will be used to incur eligible exploration expenses that qualify as flow-through mining expenditures related to the company’s projects in Canada.

Talisker shares advanced on the news, rising 13.3% or $0.02 to 17 cents. The shares are currently trading in a 52-week range of 36 cents and 13.5 cents.

Talisker is engaged in gold exploration at two advanced gold projects in British Columbia with significant exploration potential and historic high grade gold production. They are the Bralorne Gold Complex and Ladner project.

Another key asset is an 85% interest in the Spences Bridge Gold Belt and several other early stage greenfield projects.

The Bralorne mine complex was one of the highest-grade and longest producing gold mines in British Columbia. It operated for over 50 years. The complex consisted of three mines – Bralorne, Pioneer, and King – which produced 4.2 million ounces of gold at an average recovered grade of 17.7 g/t.

Production ceased in 1971 due to the low gold price at the time.

When Talisker acquired the Bralorne project in November, 2019, it said that with more than 60 veins identified, many open along strike and at depth, and with demonstrated high-grade continuity from historic sampling, the project represents an opportunity to add significant ounces to its inventory.

A small high-grade resource was defined by previous owners. Mineral resources for Bralorne currently stand at 91,000 ounces gold in the measured and indicated category, and 78,000 ounces in the inferred category. However, Talisker working to develop a maiden resource estimate that is expected to encompass 11 veins, including six from the Bralorne area, two from King and three from the Pioneer area. All defined veins are located from surface to a depth of 700 metres, the company said recently.


Share this article

Leave a Reply

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

×