Gold Basin Resources Corporation (TSX-V:GXX) said it has closed the first tranche of its previously announced non-brokered private placement and has provided an exploration update for the company's 100%-owned Gold Basin project in Mohave County, Arizona.
The company said the first tranche of the private placement saw the issuance of 14,676,735 common shares at a price of $0.15 each for gross proceeds of approximately C$2,201,510.25.
The financing is oversubscribed, with an aggregate amount of $2,552,510.55 arranged to date, and the company anticipates closing the second and final tranche later this month.
The proceeds of the financing are intended to fund ongoing exploration at Gold Basin's mineral projects and for general working capital.
READ: Gold Basin Resources to 'immediately' launch 5,000-meter drill program at oxide gold project in Arizona
The company said it paid finder's fees on a portion of the financing to McFaddens Securities Pty Ltd (as to $82,440), PI Financial Corp (as to $1,800), Haywood Securities Inc. (as to $18,285), Canaccord Genuity Corp (as to $8,775) and Leede Jones Gable Inc (as to $15,300) consisting of a cash commission equal to 6% of gross proceeds raised by each finder.
The shares issued under the first tranche will be subject to a hold period of four months and one day in Canada from the date of issuance, and the closing of the financing is subject to final acceptance by the TSX Venture Exchange.
Certain officers and directors of the company participated in the financing under the terms described above. These constitute related party transactions under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).
None of the securities have been and will not be registered under the United States Securities Act of 1933, as amended or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from such registration requirements.
Exploration Update
Gold Basin said the previously announced 5,000-metre (m) minimum Phase 2 reverse-circulation (RC) drill program is progressing ahead of schedule and under budget at the Gold Basin project in Arizona. Phase 2 drilling is focused on resource definition at the Stealth, Red Cloud and PLM oxide gold deposits, and the largely undrilled strike gaps in between some of these zones.
It noted that 4,459m in 37 holes have been completed since January 19, 2023, with 10 holes drilled at PLM, 25 holes drilled at Red Cloud, and 5 holes drilled at Stealth. All holes have been sampled and submitted for assay, with preliminary results expected within one month.
Gold Basin said it will be collecting property-wide LiDAR data and aerial photography within the next 4-6 weeks, to assist in future NI 43-101 resource estimation and property-wide structural interpretation. Expected accuracies of the LiDAR data will be less than ±15 centimetres (cm) vertical and ±30cm horizontal. The color aerial photography will be orthorectified to the LiDAR bare earth model to produce an orthophoto with a 20cm pixel resolution.
The company also conducted a preliminary ground gravity survey this month over a 1.5 x 1.5 square kilometre area surrounding the Cyclopic Deposit to further investigate the Iron Oxide Gold (IOG) deposit model for Gold Basin mineralization.
A distinct geophysical signal of IOG and Iron Oxide Copper Gold (IOCG) deposits is a gravity high, and if such a feature is present at the Cyclopic Deposit, a regional ground gravity survey will be considered to evaluate the potential for near-surface IOG/IOCG deposits in underexplored regions of the Gold Basin project.
Gold Basin Resources is engaged in the business of mineral exploration and the acquisition of mineral property assets in North America, including the Gold Basin Property located in the Gold Basin Mining District, Mohave County, Arizona, which comprises five mineral rights and 294 unpatented mining claims totalling 30.8 square kilometres. A total of 74 new unpatented claims and an option to acquire additional claims has expanded the total land footprint to 42 square kilometres.
Contact the author at jon.hopkins@proactiveinvestors.com