Snowline Gold Corp. (CSE:SGD) has told investors it will be able to accelerate its exploration plans in the Yukon now that it has closed the first tranche of a previously-announced private placing, bringing in C$22.3 million gross.
The company issued seven million flow-through (FT) shares at C$1.40 per FT share and ten million units at C$1.25 each.
"With the close of this first tranche, Snowline is well funded to explore through the next two field seasons," said Snowline CEO Scott Berdahl in a statement.
"The funds also allow us to accelerate our exploration plan, effectively bringing drill holes we'd anticipated for 2023 into the current season, and from 2024 into 2023.
READ: Snowline Gold to raise up to C$25.23M in a private placement financing
"We are grateful for the ongoing support of Crescat Capital and of other shareholders who made this transformative financing possible amidst challenging capital market conditions," he added.
Each unit in the placing comprises one company share and one-half of one share purchase warrant, with each whole share purchase warrant, a warrant.
Each warrant is exercisable for one company share for C$2.50 until July 22, 2024.
The FT shares do not involve warrants, and they are supported by strong back-end Snowline investors, who do not receive the flow-through benefits, noted the company.
A second and final tranche of the offering, comprising the issue of about 2.34 million additional units for further gross proceeds of about C$2.93 million is expected to close on or around 2 August this year.
All securities issued in connection with the first tranche are subject to a hold period of four months and one day from closing.
Snowline Gold Corp is a Yukon-focused explorer, with a portfolio of seven projects covering over 127,000 hectares (ha) The company is exploring its flagship 85,000 ha Rogue and Einarson gold projects in the highly prospective yet underexplored Selwyn basin.
Contact the author at giles@proactiveinevstors.com