Provenance Gold (CSE:PAU) is raising C$4.5 million ($4.94 million) from a strategic investment group through a non-brokered private placement.
The company will issue 18 million units at C$0.25 each, comprising one share and one-half of a purchase warrant.
Each purchase warrant is exercisable at C$0.30 for a five-year period.
In conjunction with the placement, both parties will enter an investor rights agreement which will cover the investor’s rights to participate in future financing schemes and allow it to maintain pro rata ownership in the event of dilutive issuances.
President Rob Clark says the offering reflects increasing investor interest and confidence in both the company and its projects.
“Having strategic investors that share our vision and have the capability to add resources as the project continues to grow is extremely beneficial,” Clark says.
“I firmly believe we are greatly undervalued as we continue to fast track exploration activities in an effort to maximise shareholder value.
“Solidifying long-term strategic shareholders that share our vision and understand the true value of our projects is critical for our trajectory at this junction.”
Provenance Gold is a gold explorer focused on developing the Eldorado Project to become the “next major gold system in eastern Oregon”.
Located 60km northwest of Vale in Malheur, Oregon, the Eldorado Project holds a historical resource estimate of 1.98 million ounces @ 0.753 grams per tonne gold.
Write to Maddison Elliott at Mining.com.au
Images: Provenance Gold
