Idaho Champion Gold Mines Canada Inc (CSE:ITKO) (FRA:1QB1) said it has closed the first tranche of a previously announced private placing, raising C$703,000 gross.
On May 25 this year, the gold-focused explorer announced a non-brokered private placement of up to 10 million units at C$0.15 each for gross proceeds of up to C$1.5 million.
The first tranche saw it issue 4.68 million units, paid a cash finders' fee of C$18,516 and issued 123,439 finders' warrants. Each unit consists of one common share and one non-transferable purchase warrant.
READ: Idaho Champion Gold Mines says induced polarization survey is now underway
Each warrant will entitle the holder to purchase one further share for C$0.25 for 48 months from the date of issue and will be subject to an acceleration clause whereby the company may force exercise of the warrant any time before the end of the 48-month period if the Idaho Champion share price trades over C$0.40 per share for 20 consecutive days.
The proceeds will be used for an exploration program at its wholly-owned Champagne gold project in Idaho, US, and for general working capital.
The company is committed to advancing its 100%-owned highly prospective mineral properties in Idaho.
This month, the company revealed it had begun an induced polarization (IP) resistivity survey at its Champagne project.
The ongoing IP survey is part of a larger, previously announced 2021 field program. Idaho Champion will also complete IP line 6 from its 2020 test program, as well as two additional lines.
"Our 2021 field program is developing nicely at Champagne with the technical team currently executing mapping and sampling programs across the property, focused on the huge extent of known alteration and historic occurrences," said Jonathan Buick, CEO of Idaho Champion.
"We expect that the results of the extended IP survey will complement the ongoing work, resulting in additional drill targets that we expect to test later in the 2021 drill campaign and beyond."
Contact the author at giles@proactiveinvestors.com