Bitech has so far outlined 259,396 tons of grade 0.44 oz gold per ton in two zones where it will spend the best part of the $600,000 it has set aside for exploration.
A 10,000-m drilling program now under way is designed to explore the Nugget Pond zone at depth and along strike. The company is also building a winter road from Snooks Arm to the Nugget Pond site.
An additional $750,000 from the placement is being used to pay down outstanding debts and for general working capital purposes, according to Bitech.
The private placement was arranged last December when Bitech’s shares were trading at 58 cents on the Alberta Stock Exchange. More recently, they had risen to $1.30.
Under the terms of the placement, Bitech issued 90 units to 29 Newfoundland investors. Each unit consists of 10,000 common shares, 6,667 flow-through common share purchase warrants and 10,000 common share purchase warrants. They will generate $450,000 for working capital purposes and $450,000 for exploration.
Under a second $300,000 offering, 600,000 common shares and 600,000 common share purchase warrants with a one-year term were issued.
A third $150,000 offering was comprised of 200,000 flow-through common shares at 75 cents each.
The company expects to have a second drill on site in the near future.
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