Nevada King Gold (TSXV: NKG; OTC: NKGFF) is increasing its previously announced $6.8-million non-brokered private placement to $11.3 million through the issuance of 25 million common shares priced at 45¢ each.
The lead order will come from the company’s CEO, Collin Kettell, who intends to subscribe for 10 million shares for a total of $4.5 million. Participation by management and insiders is expected to make up roughly half of the financing.
Upon closing of the private placement, Nevada King would have more than $23 million in working capital that will underpin the its plans to aggressively pursue exploration activities along the Battle Mountain trend.
The company is currently the third-largest mineral claim holder in the state of Nevada behind Nevada Gold Mines (the joint venture of Barrick Gold [TSX: ABX; NYSE: GOLD] and Newmont Mining [TSX: NGT; NYSE: NEM]) and Kinross Gold (TSX: K; NYSE: KGC). Starting in 2016, it has built its portfolio of assets through staking large project areas with significant historical exploration work that have the potential to host multi-million ounce gold deposits.
District-scale projects under Nevada King’s portfolio now include the 100%-owned Atlanta mine, located 100 km southeast of Ely; the Lewis and Horse Mountain-Mill Creek projects, both located between Nevada Gold Mines’ Phoenix and Pipeline mines; and the Iron Point project, located 35 km east of Winnemucca.
The Atlanta mine is a historical producer with a National Instrument 43-101 compliant pit-constrained gold resource of 460,000 oz. in the measured and indicated category (11 million tonnes at 1.3 grams gold per tonne), plus an inferred resource of 142,000 oz. (5.3 million tonnes at 0.83 gram gold).
A Phase I, 5,500-metre drill program was initiated last year at Atlanta with the goal of adding additional ounces in the pit, resulting in a brand new discovery of 9.1 metres grading 8.26 g/t gold located 560 metres north of the Atlanta pit.
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