Newcore Gold announced that it has entered into an agreement with a syndicate of underwriters led by Stifel GMP pursuant in a C$5,010,000 bought deal financing.
Detailing the terms of the agreement, the underwriters agreed to purchase, on a bought deal basis, 16,700,000 common shares of the Company at a price of C$0.30 per Common Share for aggregate gross proceeds to the Company of C$5 million.
The Common Shares will be offered by way of a prospectus supplement in all provinces and territories of Canada, except Québec pursuant to National Instrument 44-102– ‘Shelf Distributions’, the company’s release stated.
The Shares will also be offered and sold in the United States on a private placement basis. The shares will be offered in pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended and other jurisdictions outside of Canada on an exempt basis.
“The Company intends to use the net proceeds from the Offering to fund exploration and development expenditures at the Company’s Enchi Gold Project in Ghana as well as for working capital and general corporate purposes.”Press Release
The Offering is scheduled to close on or about July 12, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (TSX) and the securities regulatory authorities. The company’s market capitalization stands at C$35.040 million with share price at approximately C$0.29 as at the last trading activity yesterday.
Company’s Resource Growth Potential
The company’s drill results exhibit resource growth potential. Recent results of the ongoing 90,000 metre drilling program, confirmed the potential for growth. Of 82 holes have been drilled on the target, with drilling testing mineralization to an average vertical depth of only 75 metres.
“These results are the continuation of the results we released last month, confirming and expanding one of three new discoveries at our Enchi Gold Project. These results and new discoveries confirm the potential for Enchi to host additional deposits.”Luke Alexander, CEO
These positive results show an expansion of the new discovery at Enchi and confirmed “the potential for resource growth across the Project”, which is a district scale property located on a very productive gold belt. The gold belt hosts a series of multi-million-ounce gold mines.
Since 2020, the 90,000 metre discovery and resource expansion has yielded impressive results, expected to be completed in the second quarter of 2022. The programme has extensively used both Reverse Circulation (RC) and diamond drilling to assess the possible extension of resource at the Enchi Gold Project.
The company’s drilling program has extended mineralization on the central portion of the main structure by 100 metres to the south, intersecting 1.64 g/t Au over 10.0 metres from 158 metres.
With respect to the drilling programme, all of the zones demarcated represent high priority targets based on geological, geochemical and geophysical surface work and previous trenching and drilling.