- McFarlane Lake Mining (CSE:MLM) will undertake a C$6.75 million non-brokered private placement, including a lead order from Michael Gentile, one of Canada’s most prominent individual mining investors.
- The junior mining company’s flagship Juby project in Ontario hosts a compliant resource of more than 4 million ounces of gold.
- McFarlane Lake Mining stock closed Thursday trading at C$0.195, adding 34.48 per cent on the news.
McFarlane Lake Mining (CSE:MLM), a Canadian junior gold company, will undertake a C$6.75 million non-brokered private placement, including a lead order from Michael Gentile, one of Canada’s most prominent individual mining investors.
This article is a journalistic opinion piece which has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Gentile has agreed to subscribe for up to C$6.35 million, with Pierre Beaudoin, a mining executive with more than 30 years of processing, design, construction and start-up experience, committing to the remaining balance. Upon closing, Gentile will own 19.67 per cent of issued and outstanding shares on a partially diluted basis.
McFarlane will issue units priced at C$0.12, with each unit consisting of one common share and one share purchase warrant, and each warrant allowing the holder to purchase an additional share for C$0.16 for 36 months from the date of issuance.
The company may use the proceeds for general working capital purposes, to partially repay outstanding debentures, as well as to advance ongoing exploration and development at its flagship Juby gold project near Gowganda, Ontario, within the mineral-rich Abitibi Greenstone Belt.
Juby is estimated to host an NI 43-101 compliant resource of 1.01 million ounces of gold indicated and 3.17 million ounces inferred at a base-case of only US$2,500 per ounce, a significant discount to the price of US$4,495.80 on ADVFN at the time of writing, which would value the resource at more than US$18 billion in the ground.
All securities issued will require a statutory hold period of four months plus one day as dictated by Canadian securities laws.
Leadership commentary
“We are very pleased to welcome Michael Gentile and Pierre Beaudoin as strategic investors. Their experience in the mining sector and track record of supporting high-quality exploration and development companies aligns well with our vision for McFarlane Lake. Our exploration program remains fully funded and this investment now gives us optionality around debt securities repayment,” Mark Trevisiol, President and Chief Executive Officer of McFarlane Lake Mining, said in Thursday’s news release.
“I am excited to make this major investment in McFarlane Lake and support the advancement of the Juby gold project,” Gentile added. “McFarlane Lake ticks all the boxes I look for in a mining project: size, scale, infrastructure, grade and compelling exploration upside, all in a proven Tier 1 jurisdiction and trading at only a C$60M market cap. I look forward to working closely with management to advance the asset and create long-term shareholder value.”
About McFarlane Lake Mining
McFarlane Lake Mining is a Canadian gold exploration company advancing a prospective project portfolio in the province of Ontario, including a multi-million-ounce deposit and a pair of past-producing mines.
McFarlane Lake Mining stock (CSE:MLM) closed Thursday trading at C$0.195, adding 34.48 per cent on the news.
Join the discussion: Find out what investors are saying about Michael Gentile and this Canadian gold stock on the McFarlane Lake Mining Ltd. Bullboard and make sure to explore the rest of Stockhouse’s stock forums and message boards.