US Gold Corp (NASDAQ:USAU) founder Edward Karr spoke with Proactive about recent developments at its CK Gold Project in Wyoming, which is now fully permitted and ready for construction.
Karr outlined the company’s plans to update its 2021 pre-feasibility study by January 2025, aiming for a bankable feasibility study by mid-2025.
Proactive: We're here at Resourcing Tomorrow 2024. Joining me in the Proactive studio is Edward Karr, founder of US Gold Corp. Edward, great to have you in the studio with us today. So what brings you to Resourcing Tomorrow?
Edward Karr: Yeah, great to be here. Look, another gold conference, natural resource conference. So here with US Gold Corp (NASDAQ:USAU), it's a great conference. We've been here for the last several years and out talking about the company. We've got a booth close by to you guys here and very fortunate because we're right next door to Barrick Gold.
Good place to be. Tell us more about US Gold and the story you're telling investors at the conference.
Sure. Look, it's a really exciting time for US Gold Corp, and great to be here talking to people about the company. The big, exciting news for US Gold Corp was in the early part of November when we got the final air quality permit approved. If you remember, we were approved for the permit to mine application back in April, and there were three conditions to that permit. Number one was to put forward a reclamation bond for the project, which we did. Number two was to secure a water discharge permit, which we did very quickly. The final piece of the puzzle was the air quality permit.
Our president and CEO, George Bee, and the team made the decision to take that to a public comment hearing. So there was an official hearing in Cheyenne, Wyoming, where people could come, participate, and express their positive or negative comments. That public hearing took place, and the Wyoming Department of Environmental Quality looked at the whole file and made the positive decision to approve that air quality permit. That was granted in early November. So now, the CK Gold Project in Wyoming, which is U.S. Gold's flagship project, is a fully permitted project and ready to go towards construction production.
And you also had news the other day that the company secured $10.2 million in financing. So you're obviously well financed as you move forward.
Very much so. Yeah. Since the announcement of the permit, gold has been doing well. I'm very bullish on copper, as most of us are, with the supply-demand imbalances. The share price of US Gold Corp reacted positively.
George Bee and our chairman, Luke Norman, had a lot of meetings, and there was significant interest. We announced a $10.2 million non-broker raise, which is just waiting to close, probably any day now. It brought in some well-known mining industry veterans. Our shareholder registry has broadened, which is very welcome. In addition, some of our major long-term supportive shareholders participated in that offering to increase their position. It shows strong shareholder support. With that raise, the company is fully cashed up for two years and definitely into that construction-production decision.
Now George Bee and the team are busy updating the December 2021 pre-feasibility study. George expects to have that out by January 2025. That will lead to a bankable feasibility study, likely by June 2025. Once we have that, we've seen tremendous interest from project finance groups, private equity, commodity traders, and debt lenders. We’re positive about securing financing proposals, raising the required capital, and then it’s up to George and the team to build a mine.
And the sorts of conversations you're having at the conference — are you generating excitement?
Very much so. It’s an interesting time in the industry. There's a tremendous amount of capital on the sidelines from both debt and equity lenders. There aren’t many permitted projects in safe jurisdictions. When you look at the U.S., Wyoming, and a fully permitted project with robust economics and an incredible mine builder like George Bee, this project is in demand.
Gold was the hot topic at the conference last year. Given how gold has risen this year to new all-time highs, is it the topic of conversation again?
It really is. It’s amazing that we’re scraping all-time highs on gold, likely heading higher. We live in a world where every day brings new geopolitical instability. Demand for gold is strong, whether from inflation or as a hedge.
But at this conference, it’s quiet. We're on day two, and you’d expect more interest with gold approaching all-time highs. We’ve had a packed schedule, meeting big gold funds and debt lenders. However, I haven’t seen the generalist hedge funds or retail investors yet. That’s bullish. I think this is a stealth bull market. The generalist investor isn’t in yet, and retail investors aren’t either. I think next year will be incredible for equities in this sector.
Quotes have been lightly edited for clarity and style