Newcore Gold Ltd. - President & CEO, Luke Alexander
President & CEO, Luke Alexander
Source: Newcore Gold
  • Newcore Gold (NCAU) has upsized its previously announced private placement to C$15 million ahead of exploration and development work in Ghana
  • The company now intends to issue 18.75 million common shares at a price of $0.80 each
  • Haywood Securities and Stifel GMP will co-lead a syndicate of underwriters that includes Cormark Securities, Raymond James and Sprott Capital Partners
  • It remains subject to approval from the TSX Venture Exchange and is expected to close by November 5, 2020
  • Newcore Gold (NCAU) is currently down 4.4 per cent to $0.87 per share

Newcore Gold (NCAU) has upsized its previously announced private placement to C$15 million ahead of exploration and development work in Ghana.

According to an original placement released yesterday, the Vancouver-based gold developer had intended to issue 12.5 million common shares at a price of $0.80 each to raise a total of $10 million.

This has now been increased to 18.75 million units.

Haywood Securities and Stifel GMP have been appointed as co-lead agents of the offering, acting on behalf of a syndicate of underwriters that includes Cormark Securities, Raymond James and Sprott Capital Partners.

The planned exploration and development work will be carried out at Newcore Gold’s Enchi Gold Project in southwest Ghana, with a portion of the remaining proceeds expected to be used for working capital and general corporate purposes.

The Enchi Project currently hosts an inferred mineral resources of 1.2 million ounces at an average grade of 0.72 grams per tonne of gold. It covers 216 square kilometres and encompasses roughly 40 kilometres of Ghana’s prolific Bibiani Shear Zone, which is home to Kinross Gold’s Chirano mine as well as several other five-million-ounce deposits.

According to an announcement dated September 28, 2020, Newcore intersected 1.67 grams per tonne of gold over 47 metres, including 3.63 grams per tonne over 10 metres, as part of an ongoing 8,000-metre drilling program.

Luke Alexander, President and CEO of Newcore Gold, said he was pleased with the results.

“The initial results confirm the potential extension of shallow, oxide gold mineralisation beyond the limits of the currently defined resource area. Boin remains open for potential resource expansion along strike and to depth and is the first of six areas we are targeting as part of this drill program,” he added.

Newcore Gold (NCAU) is currently down 4.4 per cent to $0.87 per share at 3:04pm EDT.

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