Maritime Resources (TSX-V:MAE) has announced the closing of a non-brokered private placement of 74 million common shares at a price of $0.05 per common share for aggregate gross proceeds of C$3.7 million.
The net proceeds of the offering will be used for final permitting costs to be paid by the company on or prior to December 31, 2022, with respect to the Hammerdown gold mine located in the Baie Verte Mining District near the town of King's Point, Newfoundland and Labrador.
Maritime said the proceeds would also go toward remaining costs associated with the company's feasibility study, plus completing up to 5,000 metres of drilling on or prior to December 31, 2022 at the Hammerdown Project and or its nearby Orion gold deposit.
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Completion of the offering is subject to final acceptance by the TSX Venture Exchange.
Maritime said it was pleased to have the continued support of its largest institutional shareholders, Dundee Goodman Merchant Partners and Tembo Capital, in addition to welcoming Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) as a strategic investor.
"Following the positive feasibility study results for the Hammerdown Gold Project, we are advancing the remaining permitting requirements and initiating a drill program with the aim of extending the mine life," the company said in a statement.
The Hammerdown gold project is characterized by near vertical, narrow mesothermal quartz veins containing gold associated with pyrite. Richmont Mines last operated Hammerdown between 2000 and 2004.
Maritime also owns the gold circuit at the Nugget Pond metallurgical facility in Newfoundland and Labrador, the Lac Pelletier gold project in Rouyn Noranda, Québec and several other exploration properties and royalty interests in key mining camps across Canada.
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