HighGold Mining Inc (CVE:HIGH) announced Friday a C$9.3 million bought deal financing to be used for on-going exploration at its properties and for general corporate purposes.
The group's flagship asset is Johnson Tract - a gold, zinc, copper property near tidewater, 125 miles (200 kilometers) southwest of Anchorage in South Central Alaska. The firm also holds gold assets in Canada.
READ: HighGold Mining reports encouraging assay results for the first two holes drilled at flagship Johnson Tract Gold property
Sprott Capital will act as lead underwriter on its own behalf and, if applicable, of a syndicate, which will purchase C$9,304,000 of the firm's shares, HighGold said in a statement.
The offering comprises 1.28 million shares issued on a flow-through basis, which may be gifted or sold by the initial purchaser at C$1.80 each, and 5.6 million (C$7,000,000) shares at C$1.25 each.
Notably, the underwriters have the option to increase the offering by up to an additional 20%.
Earlier this week, HighGold reported encouraging assay results for the first two holes of a nine-hole drill program completed at Johnson Tract.
In a statement, HighGold said that the assays showed exceptional widths of continuous high-grade gold and base metal mineralization have been intersected.