Equity Metals Corporation (TSX-V:EQTY, OTCQB:EQMEF) said it has closed the first tranche of its previously announced private placing, raising C$1,692,650 gross to be used to advance its Silver Queen gold-silver exploration project in British Columbia.
The first tranche comprised 8,333,333 flow-through units (FT units) sold at C$0.12 each for proceeds of C$1 million, along with the sale of 4,711,900 premium flow-through units (PFT units), which were sold for C$0.147 each for proceeds of $692,650.
Under the first tranche of the financing, each FT unit and PFT unit comprised one flow-through share and one non-flow through share purchase warrant, with each warrant exercisable to purchase one more share for three years at an exercise price of C$0.15 per share.
Equity Metals said it expects to close a second tranche in January this year by issuing up to 10.5 million non-flow-through units (NFT units) to be sold at C$0.10 each, raising C$1,050,000 gross. The net proceeds received from the sale of the NFT Units will be used for general working capital and may include exploration expenditures, it added.
READ: Equity Metals ups private placement for Silver Queen exploration to around $2M
Silver Queen is a gold-silver property with over 100 years of historical exploration and development and boasts significant infrastructure, which was developed under previous operators. It contains two historical declines into the No. 3 Vein, camp infrastructure, and a maintained tailings facility.
Equity Metals said it expects exploration to begin during the second quarter of 2023, initially testing extensions of the Camp and Sveinson targets, which were identified in drilling from 2021-22 exploration programs.
Further work will then concentrate on the confirmation and extension of mineralization on the George Lake and George Lake South targets and the identification of additional bonanza-grade silver mineralization on the western side of the property, the company added.
In December last year, Equity Metals issued an updated resource estimate for the project, which lifted the indicated category by 187% and the inferred category by 30% compared to a 2019 report.
The company has spent C$6.75 million on exploration at the asset since 2019 resulting in a very low discovery cost of US$0.15 per ounce of added silver-equivalent (AgEq) or US$11 per ounce of added gold-equivalent (AuEq).
The resource estimate remains open for additional delineation west of the Camp target and within the Sveinson target. In addition, there are several targets that have only been tested by a few drill holes and remain very attractive areas for new discoveries and a resource increase.
Equity Metals is a Manex Resource group company, which provides exploration, administration, and corporate development services for Equity Metals' two major mineral properties - the Silver Queen gold-silver-zinc-copper project in central British Columbia, and the Monument Diamond project, located in Lac De Gras, Northwest Territories.
The Silver Queen asset spans 45 claims, 17 crown grants, and two surface crown grants totaling 18,852 hectares, with no underlying royalties. Mineralization is hosted by a series of epithermal veins distributed over a 6 square kilometre area.
Contact the writer a giles@proactiveinvestors.com