Titan Mining Corp. [TI-TSX; TNMCF-OTC] has raised $8 million from a non-brokered private placement of 16 million units priced at 50 cents each. Part of the proceeds will be used to fund drilling at its newly-optioned Mineral Ridge property in Esmeralda County, Nevada, and for district exploration on lands around the Empire State zinc mine in New York.
Titan shares advanced on the news, rising 6.3% or $0.04 to 67 cents in light trading and now trade in a 52-week range of 75 cents and 13.5 cents.
Under the terms of the financing, each unit consists of one common share and one-half of a common share purchase warrant. Each warrant is good to buy one common share for 75 cents for three years.
The private placement was fully subscribed to by directors and officers of the company, including Richard Warke, executive chairman, and other supportive shareholders.
“We are excited to commence the company’s first drill program at the Mineral Ridge property with a target to rapidly expand resources around the existing open pits, which have been vastly underexplored to date, and thoroughly test the other targets with the potential for new discoveries,’’ said Titan CEO Don Taylor.
“Our plan will be to immediately begin a comprehensive drill campaign with a target to expand resources around the existing open pits and thoroughly test the other targets with the potential for new discoveries,” he said.
The Mineral Ridge property is a fully-permitted mine and mill operation comprised of approximately 14,000 acres of patented, fee-owned, and unpatented mining claims which include certain water rights. Historically, the property produced approximately one million ounces of gold from underground and open pit operations.
Measured and indicated resources are 349,500 ounces of gold. On August 31, 2020, Titan said it signed an option agreement with Scorpio Gold Corp. [SGN-TSXV]. Titan must spend US$35 million over five years to earn an 80% stake in Mineral Ridge Gold LLC (MRG), an indirect subsidiary of Scorpio Gold holding the Mineral Ridge property mineral rights and water rights.
In addition to the earn-in option, Titan can acquire a 100% interest in MRG by spending US$7 million by January 1, 2022 and paying US$35 million by December 31, 2022. During the option, Scorpio may continue to recover gold from the heap leach operations at Mineral Ridge for its own account. Titan said 25% of the proceeds of those operations, net of operating costs, must be held in a trust account for the benefit of Titan. That part of the deal is subject to Titan exercising the earn-in option or the purchase option.
If Titan does not exercise the earn-in option or the purchase option, the funds in the trust account will be released to MRG.
Aside from Mineral Ridge, Titan holds a 100% interest in the Empire State Mine in upstate New York. The underground mine and mill complex produces approximately 4.0 million payable pounds per month of zinc contained in concentrate, at an operating cost of around US$0.60 per month.