- Contact Gold (C) has raised more than C$14.77 million in a public offering to fund exploration work at its projects in Nevada, USA
- The company issued 73,870,000 units at a price of $0.20 each, comprised of one common share and half of one common share purchase warrant
- Each whole purchase warrant will be exercisable at a price of $0.27 per share until September 29, 2022
- A portion of the proceeds has already been used to retire all of the company’s issued preferred shares, pursuant to an agreement with Waterton Nevada Splitter LLC
- Contact Gold (C) is currently down 7.69 per cent and is trading at 18 cents per share
Contact Gold (C) has raised more than C$14.77 million in a public offering to fund exploration work at its projects in Nevada, USA.
Under the terms of the offering, which was conducted by Cormark Securities, the Vancouver-based exploration company issued a total of 73,870,000 units at a price of $0.20 each.
These units are comprised of one common share in Contact Gold and half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share at a price of $0.27 until September 20, 2022.
The proceeds will be used to fund drilling work at the company’s Green Springs and Pony Creek projects in Nevada, along with exploration activities at its other properties.
A portion of the funds have also been used to redeem and retire all of Contact Gold’s Class A preferred shares, pursuant to an agreement with Waterton Nevada Splitter LLC – a major shareholder which previously owned the preferred shares.
Matthew Lennox-King, President and CEO of Contact Gold, said the successful closing of the offering will allow the company to ramp up its 2020 drill program at the Green Springs Project, where drilling work will follow up on high-grade oxide that was intersected last year.
“In addition, retiring the preferred shares will better align all stakeholders and position the company to capitalise on the value of its Nevada projects,” he added.
According to an announcement dated July 8 this year, Contact Gold is currently engaged in a fully-permitted, 9,000-metre reverse circulation and diamond drilling program at Green Springs.
Of particular interest is the Echo Zone, which returned 70.1 metres at 2.36 grams per tonne of gold in 2019.
Contact Gold (C) is currently down 7.69 per cent and is trading at 18 cents per share at 11:12am EDT.