Shares of Snowline Gold (TSXV: SGD) surged on Wednesday after it completed a previously arranged bought deal private placement to fund its exploration campaigns in the Yukon.
In total, the company issued 2.2 million flow-through shares at $7.50 per share for total proceeds of $16.5 million. This includes the $15 million amount originally announced in mid-August and $1.5 million from the exercise of the underwriters’ option.
Snowline’s shares closed the trading session 3.4% higher at $5.16 apiece, giving the company a market capitalization of $732.7 million. The stock has been skyrocketing over the past few months on Snowline’s exploration success at its flagship Rogue project.
“We are encouraged by the strong support shown for this financing, both from existing shareholders including B2Gold (TSX:BTO; NYSE: BTG) and from a number of new, high-quality institutional shareholders,” Snowline CEO Scott Berdahl, said in a news release.
The Valley discovery at Rogue is being compared by analysts to Kinross Gold’s (TSX: K; NYSE: KGC) Fort Knox mine in Alaska — but “on steroids.” Recent drilling uncovered a new high-grade zone of over 2 grams per tonne gold at depth, which, bolstered by the gold intersections reported to date, would rank it among the best in Yukon, Snowline said.
The company’s strengthened treasury will allow it to advance exploration on Valley, as well as programs across its “highly prospective” gold portfolio, Berdahl said.
Snowline has eight projects across more than 3,330 sq. km in the Yukon, including the Rogue project, which covers 940 sq. km. of the under-explored Selwyn basin.
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