Allegiant Gold (TSXV: AUAU; OTC: AUXXF) has once again increased the size of its recently arranged private placement to fund the company’s exploration plans in Nevada.
This represents Allegiant’s second upsizing since its initial financing announcement of $7 million (US$5.1 million) on July 29. Shortly after, it increased the financing size to $8.5 million, and has now raised it by 50% to $10.5 million, according to a news release on Friday.
Shares of Allegiant Gold gained 34% to close at a new three-year-high of 83¢ apiece on the news before easing to 78¢ on Monday afternoon for a market capitalization of $56.7 million. The stock had traded as low as 20¢ this year.
The gold junior said it will issue up to 21 million units at 50¢ each. Each unit comprises one common share and one-half of a warrant that is exercisable at 70¢ per share for 18 months.
Eastside project
As disclosed previously, the company plans to use the proceeds to fund exploration at its flagship Eastside gold-silver project, located 35 km from the town of Tonopah.
“This financing will allow us to accelerate the development of Eastside through expanded geophysics, detailed mapping, and up to 18,000 metres of additional RC (reverse circulation) and diamond core drilling,” Allegiant’s CEO stated in a July 29 release.
The Eastside project, covering 81 sq. km of mineral claims, is still in the resource expansion stage. Its inferred resource comprises 61.7 million tonnes grading 0.55 gram gold per tonne, with a cut-off of 0.15 gram per tonne, amounting to 1.09 million ounces. Additionally, the resource contains an average of 4.4 grams silver per tonne, totalling 8.7 million ounces.
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