York Harbour Metals raising $6.6 million.
York Harbour Metals Inc. [YORK-TSXV, YORKF-OTCPK, 5Deo) said Monday it has struck a deal with an underwriting syndicate in connection with a private placement offering that is expected to raise up to $6.6 million.
Proceeds from the offering are earmarked for exploration and development at the company’s York Harbour copper-zinc-silver project in Newfoundland.
York Harbour shares were unchanged Monday at $1.14 and are trading in a 52-week range of $1.49 and 25 cents.
The offering will consist of units priced at $1.00, with each unit consisting of one common share and one half of a common share purchase warrant, as well flow-through units priced at $1.20 per unit.
Each unit will consist of one common share that will qualify as a “flow-through shares” within the meaning of the Income Tax Act of Canada and one half of one warrant.
The offering will also consist of flow-through units to be sold to charitable purchasers for $1.50 per unit. Each charity flow-through unit will consist of one common share that will qualify as “flow-through shares” (Tax Act) and one half of one warrant.
Each warrant will entitle the holder to purchase one common share at an exercise price of $1.50 per warrant share at any time up to 24 months following the closing date, likely on June 20, 2022.
Under an agreement, the agents have an option to offer up to an additional 15% of the units, flow through units and charity flow-through units sold in the offering. That option can be exercised at any time up to 48 hours before the closing date.
York Harbour is an exploration and development company with a focus on the York Harbour project, a past producing mine located 27 kilometres from Corner Brook, Nfld.
News of the offering comes after the company recently released a batch of results from Phase 2 drilling that it described as the best intersections of grade and length to date.
Drilling highlights include hole YH21-24, which returned 29 metres of 5.25% copper, 436.5 g/t cobalt, 8.97 g/t silver and 0.801% zinc.
The Phase 2 drilling program included 29 holes covering 4,562 metres that targeted volcanogenic massive sulphide (VMS) mineralization along a 400-metre strike length within the Main Area near historic underground mine workings.
The company (formerly Pheonix Gold Resources) has said it plans to continue drilling the 11 known mineralized zones and test other new massive sulphide targets, like the No 4 Brook showing, while focusing on gaining access to the 400-level and sea level adits.
The company secured the right and option to acquire a 100% ownership of the York Harbour property under a February, 2021, agreement between York Harbour and WBN Prospecting Group, which consists of Grassroots Prospecting & Prospect Generation Inc. (31.6%), United Gold Inc. (31.67%), G2B Gold Inc. (31.7%), Newton Bell Holdings Ltd. (2.5%) and Fahmy Consulting Inc. (2.5%).
The property covers approximately 3,900 hectares.