Snowline Gold Corp (CSE:SGD) (OTCPINK:SNWGF), the Yukon-focused gold explorer, revealed that Crescat Capital is investing in the group via a private placing, which will see the latter take an around 6.7% stake in the Yukon-focused explorer.
It is part of a C$1 million non-brokered placing of units and proceeds will go towards advancing, through mapping, sampling and prospecting, the Ursa gold and base metals project, and fund a future 1,500 metres (m) diamond drill program.
READ: Snowline Gold posts encouraging drill finds at Einarson gold project in Yukon
Snowline will issue over 2.8 million units at C$0.35 each for total gross proceeds of C$999,999.70.
"We are thrilled to help fund the Ursa exploration program and believe Snowline has perhaps the most exciting collection of gold and multi-metallic drill targets in the Yukon today," said Kevin Smith, Crescat's founder and chief investment officer.
"Nikolas Matysek and Scott Berdahl are a highly capable new generation management team with a strong family history in the mining industry. We expect very successful careers ahead for them."
Snowline CEO Matysek said: "Crescat's investment is a compelling endorsement of our Ursa gold and base metals project in the Selwyn Basin, Yukon. The 14-kilometre base metals and parallel 9-kilometre gold trends are attractive targets that we are excited to begin exploring. This program will add another dimension to Snowline as we continue to advance our neighbouring Einarson and Rogue projects."
The west side of the Ursa project covers a 14km trend of elevated to highly anomalous zinc, silver, copper, molybdenum, nickel, and vanadium.
Of the 45 historic stream sediment samples draining the length of the trend, 44 returned concentrations exceeding 0.1% zinc, with eight of these samples exceeding 1% zinc to a maximum of 3.4% zinc, noted Snowline.
The east side of Ursa covers a 9km trend of elevated gold in stream sediments and soils in a sequence of heavily folded carbonaceous black shales and cherts.
Under the placing, each Snowline unit consists of one Snowline share and one-half of a share purchase warrant. Each warrant will be exercisable into one share for C$0.53 and will expire two years from closing.
Upon completion, Crescat will own around 6.7% of the shares on a basic basis and about 9.8% of the issued and outstanding shares on a partially diluted basis.
Snowline boasts one of Yukon’s largest mineral portfolios at more than 90,000 hectares, with more than 72,000 hectares in the famed Selwyn Basin.
Contact the author at giles@proactiveinvestors.com