Provenance Gold (CSE:PAU) intends to complete a non-brokered private placement of up to five million units at C$0.20 per unit, amid progressing a reverse circulation drilling program at the Eldorado West Project in eastern Oregon, US.
Under the placement, each unit will comprise one common share and one-half of one transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at C$0.25 per share for a three-year period.
Subject to regulatory approval, Provenance Gold expects the placement to close within the next two weeks.
This news comes after the Vancouver, Canada-headquartered explorer completed the first five holes, as part of the ongoing drilling program. Samples are at the lab in Nevada for processing.
Initial drilling focused on expanding the known mineralisation and improving the interpretation of key structures within the mineralised system, as this news service previously reported.
CEO Rauno Perttu says the company is “excited” about the drilling program to date and the visuals encountered.
“Mineralisation at previously untested depths and extent has the potential to increase the volume of this system extensively,” Perttu says.
The Eldorado Project, located 60km northwest of Vale in Malheur County, Oregon, hosts a historical resource estimate of 1.98 million ounces @ 0.753 grams per tonne gold.
Provenance Gold is focused on advancing two near-surface gold systems in North America.
Write to Aaliyah Rogan at Mining.com.au
Images: Provenance Gold
