Snowline Gold (TSXV: SGD; US-OTC: SNWGF) will raise $15 million in an agreement with Cormark Securities to purchase 2 million flow-through shares of the company at $7.50 per share.
The money will be used to explore the Valley discovery, the broader Rogue project, and additional targets in Snowline’s Yukon-focused exploration portfolio.
Scott Berdahl, Snowline CEO and director, said the $15 million, when combined with the explorer’s current cash, means the company is “well positioned to focus on building value through discovery for multiple drill seasons.”
The offering is expected to close on or around Sept. 6, 2023, and is subject to certain conditions including regulatory and other approvals.
The fund raising news comes almost two weeks after Snowline reported a new high-grade zone at the Valley target that returned — among highlights — 2.48 grams gold per tonne over 553.8 metres from surface. The company said it was the best drill hole reported at Valley so far, and ranks among the best drill holes ever drilled for gold in the Yukon.
Snowline Gold has an eight-project portfolio covering more than 3,330 sq. km of land in the Yukon. Its flagship property is the 940 sq. km Rogue gold project in the underexplored Selwyn basin.
Company shares were up 1.2% to $5.81 apiece at mid-day in Toronto on Wednesday, valuing the company at $824.9 million. Its shares traded in a 52-week window of $2.08 and $6.07.
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