- Blackrock Gold (TSXV:BRC) has successfully closed its previously announced non-brokered private placement for gross proceeds of roughly C$4.5 million
- An original placement for up to $2.75 million was announced on May 8 this year, but was subsequently increased on May 19
- The company issued a total of 22.67 million units at a price of 20 cents each, consisting of one common share and half of one common share purchase warrant
- The proceeds will be used to fund a 7,000 metre drill program at the company’s Tonopah West property
- Blackrock Gold (BRC) is currently down 4.69 per cent and is trading at 30 cents per share
Blackrock Gold (TSXV:BRC) has successfully closed its previously announced non-brokered private placement for gross proceeds of roughly C$4.5 million.
An original placement was released on May 8, 2020, for up to $2.75 million, but this was subsequently increased on May 19.
As such, the company issued a total of 22.67 million units at a price of $0.20 each. These units consisted of one common share in the company and half of one common share purchase warrant.
Each warrant entitles the holder to acquire an additional common share at a price of 30 cents and is exercisable until June 4, 2023.
As part of the offering, Blackrock Gold issued a cash commission of $190,190 and 950,950 finder warrants to a third party as a finder’s fee. These warrants will also be exercisable at a price of 30 cents until June 4, 2023.
Blackrock Gold says the proceeds will be used to fund a proposed 7,000 metre drill program, as well as the evaluation of mineralised mine dumps and surface tailings material, at its Tonopah West property.
The company also plans to continue a 2020 exploration program at its Silver Cloud property, with the remaining funds going towards general working capital purposes.
A variety of companies conducted exploration activities at the Tonopah West property in the 1980s and 1990s, the most prominent being Eastfield Resources.
In 1997, Eastfield drilled an exploration hole on the southwest portion of the property, intersecting 7.5 grams per tonne of gold and 288 grams per tonne of silver over 3 metres.
Then, in 2018, Coeur Mining undertook their own drill program, cutting two 1.5-metre zones grading 9.7 grams per tonne gold with 715 grams per tonne of silver, and 4.6 grams per tonne of gold with 401 grams per tonne of silver.
Blackrock Gold (BRC) is down 4.69 per cent and is trading at 30 cents per share at 1:57pm EDT.