Sitka Gold Corp. [SIG-TSXV, OTCQB-SITKF, 1RF-FSE] said it intends to raise $3.0 million from a non-brokered private placement financing with proceeds earmarked for the company’s flagship RC gold project in the Canadian Yukon and Coppermine River project in Nunavut.
The company said the offering will consist of a combination of flow-through units priced at 22 cents per unit and charity flow-through units priced at 25 cents each.
Each flow-through unit will consist of one common share to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one half of one common share purchase warrant. Each Charity flow-through unit will be issued as part of a charity arrangement and will consist of one flow-through share and one half of one warrant. Each warrant will entitle the holder to purchase one non-flow-through common share for 38 cents on or before that date which is 24 months after closing. The exact number of flow-through units and charity flow-through units sold will be determined at closing.
Sitka Gold shares were active on the news, easing 11.9% or $0.025 to 18.5 cents. The shares are currently trading in a 52-week range of 27 cents and $0.09.
Sitka’s flagship asset is the RC Gold project, which is located 100 kilometres east of Dawson City, Yukon, in the Tombstone Gold Belt, a region that includes Victoria Gold Corp.’s [VGCX-TSX] Eagle and Brewery Creek mines, Banyan Gold Co.’s (BYN-TSXV) Aurmac project, and Snowline Gold Corp.’s [SGD-CSE, SNWGF-OTCQB] Valley discovery.
The company is currently exploring the RC Gold project with a 15,000-metre diamond drill program planned for 2024. The aim is to add significantly more ounces of gold to a pit constrained inferred resource of 1.34 million ounces of gold (61.1 million tonnes of 0.68 g/t gold) in two near surface/on surface zones known as Blackjack and Eiger.
Sitka recently said it is expanding its exploration program this year to include diamond drilling and additional exploration work on its newly acquired Clear Creek property, which lies adjacent to RC Gold claims and were acquired from Victoria Gold in return for 21.8 million shares and $11 million worth of spending commitments.
The company said six holes covering 2,636 metres have been completed to date this year, and a second drill rig has been mobilized to the project site in anticipation of drill testing high-priority targets within the recently consolidated Clear Creek intrusive complex along with other drill-ready targets located across the 431-square-kilometre, road-accessible project this summer.
The company is also advancing the Alpha Gold Project in Nevada and currently has drill permits for its Burro Creek Gold and Silver Project in Arizona and the Coppermine River Project in Nunavut.
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