Canuc Resources (TSX-V:CDA) has raised nearly C$6 million ($6.05 million) to fund the exploration and development of its East Sudbury Project (ESP) in Ontario, Canada.
Through a private placement that closed on Wednesday (14 October), Canuc issued 4.99 million units at C$1.20 per unit.
Each unit comprises one common share and half of a share purchase warrant. The warrants are exercisable at C$1.80 per share for two years.
CEO Christopher Berlet says the financing represents an important milestone for Canuc, providing ‘significant new capital’ for the two complementary initiatives planned for ESP.
The first is an engineering study required to support permitting for bulk-sample gold mining and production along the Timmins Creek Fault, near the historical Scadding gold mine.
“Our objective is to establish a pathway toward gold production that could provide a source of non-dilutive funding for continued advancement of the ESP and to reduce the company’s reliance on future equity financing,” Berlet says.
The second initiative involves drilling the iron oxide copper-gold (IOCG) targets that are now being identified through recently completed seismic and gradiometric surveys across the broader ESP property.
According to Canuc, these modern geophysical datasets provide a new framework for evaluating the extensive historical copper and gold mine workings, as well as evidence of mineralisation across the property.
“We believe the upcoming drill program has the potential to materially advance understanding of the scale and geological potential of this highly prospective mineral system located only 20km east of the globally significant Sudbury Basin mining complexes,” Berlet adds.
The financing proceeds will also be used to advance the company’s San Javier Silver-Gold Project in Sonora, Mexico, where it is exploring for potential IOCG deposit types.
Canuc Resources is developing its wholly owned East Sudbury Project, which spans more than 200km² and sits about 20km northeast of the Sudbury mining camp.
Write to Jackson Chen at Mining.com.au
Main Image: Canuc Resources
