Trifecta Gold raises $5.3 million for Yukon exploration
Trifecta Gold Ltd. [TG-TSXV, TRRFF-OTCQB] has raised $5.3 million from a non-brokered private placement. Crescat Capital lead the financing and is now a major shareholder with a 9.9% interest. Condire Investors, a Texas investment firm, also participated in a bid to maintain its 19.9% equity interest.
The private placement consisted of 12.79 million units (charity flow-through units) priced at 38 cents each, and 1.7 million ordinary units priced at 27 cents each. Each charity flow-through unit consisted of one common share and one-half of a common share purchase warrant, each of which will qualify as a flow-through share within the meaning of the Income Tax Act (Canada). Each warrant will entitle the holder to purchase one common share for 40 cents until May 15, 2027. Each ordinary unit consisted of one common share and one-half of a warrant, with each warrant also entitling the holder to purchase one common share for 40 cents until May 15, 2027.
Trifecta were unchanged Friday at 27.5 cents. The shares trade in a 52-week range of $0.35 and $0.07.
“With gold prices making all-time highs, the company now has the funding in place to complete an earn-in under the property purchase agreement with Strategic Metals Ltd. [SMD-TSXV], dated July 9, 2024,’’ said Trifecta President and CEO Richard Dreshsler.
Under the agreement, Trifecta was granted the option to earn a 100% interest in 11 projects located in central Yukon’s Tombstone Gold Belt.
The package includes the advanced Mt Hinton gold silver-project next to Hecla Mining’s [HL-NYSE] Keno Hill mine and Banyan Gold Co.’s (BYN-TSXV) AurMac deposit as well as 10 other highly prospective projects. The company said all 11 projects show characteristics of reduced intrusion-related gold systems (RIRGS) like Snowline Gold Corp.’s [SGD-CSE, SNWGF-OTCQB] recent Valley discovery or Victoria Gold Corp.’s Eagle mine.
Intrusion-related gold systems are characterized by sheeted, auriferous quartz veins, forming the carapace zones of Cretaceous age plutons.
Under the option agreement, Trifecta can acquire an initial 70% interest in the properties by spending $6 million on exploration by December 31, 2027, and issuing the number of shares that will leave Strategic with a 9.99% stake in Trifecta. Following the exercise of the first option, Strategic will also retain a 1.0% net smelter return royalty stake in the properties.
Trifecta can acquire the remaining 30% interest in the properties by issuing additional Trifecta shares to Strategic equal to 9.99% of the then outstanding shares of Trifecta at any time after the exercise of the first option and prior to March 31, 2028. Following the exercise of the second option, Strategic will retain an additional 1.0% NSR royalty interest. Trifecta can purchase the second royalty via the payment of 1,500 ounces of gold or the cash equivalent to Trifecta.
If Trifecta exercises the first option only, the parties shall form a joint venture to further explore and develop the properties.