Alaskan gold explorer Felix Gold (ASX:FXG) has launched a Share Purchase Plan (SPP) to raise up to $3 million at $0.08 per share.
The $18.98 million market capitalisation company plans to use the funds to progress exploration at the NW Array target within its Treasure Creek Project to support the delivery of a maiden Mineral Resource Estimate (MRE).
In addition, Felix plans to use the funds to further test ‘high-grade’ stibnite zones and fund ongoing operating costs.
Under the SPP, Felix Gold will offer eligible shareholders who were registered at 7pm AEST on Friday 25 August the opportunity to apply for up to $30,000 worth of new fully paid ordinary FXG shares.
The new shares will be issued at $0.08 per share, which marks a 15.4% discount to the company’s volume-weighted average price (VWAP) over the 5 trading days before the SPP was announced.
Commenting on the SPP, Felix Gold Chief Executive Officer (CEO) and Managing Director Anthony Reilly says: “Our focus is now firmly set on delivering a JORC-compliant maiden resource estimate for the NW Array Southern Zone in Q4 of this year.
“Delivering this would represent a major milestone for Felix in firming up the commercial viability of the Treasure Creek Project“
Delivering this would represent a major milestone for Felix in firming up the commercial viability of the Treasure Creek Project. Our close proximity to the Fort Knox mine, operated by Kinross Gold Corporation, represents a tangible opportunity for Felix to fast-track low-capex production of a substantial gold resource.
In parallel with the resource estimate, we will be conducting further testwork on the high-grade stibnite zones to understand the potential of this exciting new critical mineral discovery.”
The SPP closes at 5pm AEST on Wednesday 13 September 2023.
Felix Gold is an ASX-listed gold discovery company operating in the Tintina gold province in North America. The company’s flagship asset is a substantial landholding in the ‘world-class’ Fairbanks Gold district.
As of 30 June 2023, the company had $1.259 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Felix Gold
