Triumph Gold Corp. [TIG-TSXV, TIGCF-OTC, 8N61-FRA] said it has arranged to raise $3.75 million from a private placement financing deal with proceeds earmarked for its district-scale Freegold Mountain Project in the Canadian Yukon.
The private placement consists of up to 28.6 million units priced at 13.12 cents. Each unit will consist of one common share and one half of a common share purchase warrant. Each whole warrant can be used to acquire one additional share for 17.5 cents.
On January 4, 2023, Triumph Gold shares rose 30.3% or $0.05 to 21.5 cents. The shares are currently trading in a 52-week range of $1.35 and 14 cents. News of the financing follows a recent share consolidation (on the basis of one post-consolidated share for each 10 pre-consolidated share).
Triumph is a growth-oriented precious metals exploration and development company with a focus on creating value through the advancement of the Freegold Mountain Project, where the company is working to build ounces at its existing deposits while evaluating a multitude of other targets on the property.
The company is led by an experienced team with a collective history of exploration to mining success, technical acumen, and capital raising ability. CEO John Anderson raised $35 million for Triumph Gold prior to joining the company’s board of directors. Anderson is a founding general partner in Aquastone Capital LLC, a New York-based gold fund.
Freegold Mountain Project is located in the Dawson Range gold-copper belt. The project covers a 200-kilometre-square road accessible portion of the Big Creek Fault, a structural system directly related to gold-rich porphyry, epithermal and related polymetallic vein and skarn mineralization.
The area also hosts Western Copper and Gold’s (WRN-TSX) Casino Project as well as Newmont Corp.’s [NGT-TSX, NEM-NYSE] Coffee deposit, and Rockhaven Resources Ltd.’s [RK-TSXV] Klaza gold project. Goldcorp, a Canadian company that subsequently merged with Newmont, gained exposure to the road-accessible Freegold project by taking a 19.9% stake in Triumph for $6.3 million.
Since Triumph acquired the property in 2006, more than 20 mineralized zones have been identified, and NI 43-101-compliant mineralized resources have been delineated in the Revenue (gold-silver-copper-molybdenum porphyry-related) deposit, the Nucleus (gold-silver-copper) deposit, and the Tinta Hill (gold-silver-copper-lead-zinc vein-related) deposits.
The three deposits host open-pit constrained mineral resources, with two of the deposits (Revenue and Tinta Hill) including deeper, high-grade mineralized resources considered amenable to underground extraction methods.
Combined indicated mineral resources in the Revenue and Nucleus deposits stand at 42.4 million tonnes at 0.58 g/t gold, 0.08% copper and 1.2 g/t silver for a total of one million ounces of contained gold equivalent ounces.
Combined inferred mineral resources at Revenue, Nucleus and Tinta total 39 million tonnes at 0.56 g/t gold, 0.10% copper and 4.5 g/t silver for a total of 1.1 million contained gold equivalent ounces.
Higher grade (plus 1.4 g/t gold equivalent) mineralization in the newly discovered Blue Sky Porphyry Breccia is now included in an underground portion of the Revenue resource.