Onyx Gold Corp, which is being spun out from HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF), said it has closed its previously announced private placement, raising gross proceeds of $8.36 million as it progresses towards listing on the TSX Venture Exchange (TSXV).
Under the private placement, the company issued 7,888,000 non-flow-through (HD) units at a price of $0.50 each and 6,400,000 flow-through units at a price of $0.69.
The net proceeds from the issue of the HD units will be used for working capital and general corporate purposes. Certain insiders of Onyx Gold purchased or acquired direction or control over a total of 274,000 HD units as part of the private placement.
Onyx Gold also announced that it has received conditional approval for the listing of the Onyx shares on the TSXV. Pending final approval, the company will be listed as a Tier 2 issuer on the TSXV under the symbol ONYX.
Completion of the private placement moves the company toward listing, and it hopes to announce details on the initial trading date of Onyx shares in the coming days.
Onyx Gold also announced that at the annual general and special meeting of HighGold held on May 30, 2023, the shareholders of HighGold approved: (a) the omnibus share incentive plan for Onyx Gold which includes (i) a "rolling" stock option plan component; and (ii) a "fixed" share unit and deferred share unit component; and (b) the renewal of the omnibus share incentive plan for HighGold.
Onyx Gold's extensive portfolio of quality gold projects in the greater Timmins gold camp includes the Munro-Croesus Gold property, renowned for its high-grade mineralization, plus two additional earlier-stage large exploration properties, Golden Mile and Timmins South.
The company also controls four properties in Selwyn Basin area of Yukon Territory, which is currently gaining significance due to recent discoveries in the area.
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. Its flagship asset is the high-grade Johnson Tract Gold-Zinc-Copper Project located in an accessible area of Southcentral Alaska.
Contact the author at jon.hopkins@proactiveinvestors.com