Snowline Gold (TSX:SGD) has completed its previously announced C$172.6 million ($175 million) bought deal public offering of common shares to advance its flagship Valley gold deposit in the Yukon Territory, Canada.
The company issued 11.9 million common shares at C$14.50 per share, which includes the full exercise of the underwriters’ over-allotment option. Existing shareholder B2Gold (TSX:BTO) participated in the offering to maintain its 9.9% stake in the business.
Led by BMO Capital Markets as sole bookrunner and CIBC World Markets as co-lead underwriters, the syndicate of underwriters received a 4% cash commission on the aggregate gross proceeds, reduced to 2% for certain president’s list subscribers.
CEO Scott Berdahl says the strengthened treasury provides stability against a volatile market backdrop.
“The scale of the raise is informed by our projected costs through engineering and permitting to a potential construction decision,” Berdahl says.
Net proceeds are earmarked to strategically prioritise exploration and development activities at Valley, de-risking the path forward and accelerating the deposit towards a potential construction decision, as well as for general corporate purposes.
The Valley deposit holds a mineral resource estimate of 7.94 million ounces (Moz) of gold (Au) at 1.21 grams per tonne Au in the measured and indicated categories, alongside an additional 0.89Moz Au at 0.62g/t Au inferred.
Snowline Gold is a Canadian gold explorer focused on advancing its portfolio of projects in the Yukon Territory, including its flagship Rogue Project.
Write to Paula Fabe at Mining.com.au
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