Vancouver-headquartered Corvus Gold has raised C$1.3-million from a subsidiary of South Africa-based miner AngloGold Ashanti, which it would use for ongoing discovery and resource expansion programmes in Nevada.
The TSX-listed company completed a private placement with AngloGold Ashanti USA (AGA) at a significant premium, with the major being issued 500 000 common shares at C$2.60 a share.
On Monday, Corvus closed at C$1.77 a share.
“We believe that the premium paid to the market price in this financing reflects the underling quality of the Corvus assets and our commitment to district wide exploration and discovery. Corvus and its shareholders are fortunate in having such a high-quality strategic shareholder as AGA to help with unlocking the potential of this large and exciting Nevada gold district,” said Corvus president and CEO Jeff Pontius.
Following the closing of the financing, AGA owns 19.9% of the issued and outstanding shares of Corvus.
Proceeds of the financing would be used for work at the Mother Lode and the North Bullfrog projects.
The North Bullfrog project covers about 90.5 km2 in southern Nevada. The property package is made up of a number of private mineral leases of patented federal mining claims and 1 134 federal unpatented mining claims. Corvus also controls 445 federal unpatented mining claims on the Mother Lode project, which totals 36.5 km2. The total Corvus Gold 100% land ownership now covers over 127 km2, hosting two major new Nevada gold discoveries.