US Gold Corp (NASDAQ:USAU) has wrapped up a successful $4.9 million registered direct offering for its CK Gold Project in Wyoming.
The US-focused gold company concluded the purchase and sale of 1.4 million shares of its common stock at $3.50 per share in the offering.
Concurrently, the company issued unregistered warrants for the purchase of 1.4 million shares of common stock at an exercise price of $4.48 per share.
The transactions, which closed on April 24, 2024, generated aggregate gross proceeds of approximately $4.9 million, resulting in a total of 10,732,277 common shares outstanding after completion.
US Gold plans to allocate the net proceeds towards working capital and other general corporate purposes, as stated by Luke Norman, Chairman of US Gold's Board of Directors.
Norman expressed gratitude to long-term existing shareholders for leading the offering, highlighting the capital infusion's significance in advancing the CK Gold Project.
“This capital provides us with ample runway to further develop our CK Gold Project as we ramp up our activities to advance the project," Norman said.
"In the near-term we expect to receive our key Mine Operating Plan and Closure Plan permit and build upon the value propositions unique to this project.
“Additionally, we continue to hold our promising exploration assets, the Keystone project in Nevada and the Challis Gold Project in Idaho, which we anticipate advancing in due course."