Western Alaska Minerals Corp. [WAM-TSX] has upsized a previously announced private placement financing and said it now expects to raise $12 million. That marks an increase from the previous $8.2 million target.
Proceeds will be used to fund the extension of the company’s 2022 exploration program at its 100%-owned Illinois Creek Mining District project in Western Alaska, which hosts five deposits containing gold, silver, copper lead and zinc.
Using two company-owned drills, Western Alaska hopes to complete 10,500 metres of drilling by the end of 2022.
Western Alaska said the non brokered private placement of common shares has been increased to 2.93 million from 2.0 million shares, priced at $4.10 per share.
The shares advanced on the news, rising 1.9% or $0.09 to $4.79. The shares are currently trading in a 52-week range of $6.25 and 70 cents.
Covering 55,360 acres, the Illinois Creek District was originally discovered by Anaconda Minerals in the 1980s. The multiple deposits have been consolidated by Western Alaska’s management team over the past 10 years.
In a May 25, 2022 press release, Western Alaska said it had commenced drilling at the Waterpump Creek high-grade silver-lead-zinc carbonate replacement deposit (CRD).
At Waterpump Creek, a preliminary hand drawn polygonal resource by Anaconda estimated a non-43-101-comliant resource of 166,000 tons at 9.5 ounces per ton silver, 16.1% lead and 5.5% zinc. The company has said a modern resource estimate will be completed once 2021 and 2022 drilling programs been completed.
The 2022 program is primarily focused on completing 4,000 metres of drilling in the Waterpump Creek target area with additional drilling at Last Hurrah to further explore a deep IP anomaly. This year, drilling is primarily focused on extending mineralization from the bonanza WPC21-09 drill hole at Waterpump Creek, which cut 9.1 metres (true thickness) of 522 g/t silver, 14.4% lead, and 22.5% zinc, or 1886 g/t silver equivalent (AgEq).
The company said 2021 drill results demonstrated an open 500 metre by 200+ metre-wide manto of CRD mineralization developed at or near the shallow east-dipping thrust contact between thick dolomites and overlying schists.
The company said it was planning a CSAMT (controlled-source audio-frequency magnetotelluric) survey in early June (2022) to further define targets for additional drilling along the 8.0 trend connecting the Waterpump Creek CRD target with the Last Hurrah prospect and the existing Illinois Creek Ag/Au resource.
Western Alaska said part of the private placement proceeds will be used to further explore along trend in the Last Hurrah area based on the CSAMT program. Money raised will also be used for initial metallurgical studies, and continuing road route and environmental baseline studies, as well as for expenditures in anticipation of the 2023 drill program.