- Rise Gold (CSE:RISE) closed a US$3 million non-brokered private placement with participation from Equinox Partners
- Equinox Partners invested US$1.5 million in the financing, increasing its stake to 19.8 per cent on an undiluted basis
- Rise Gold is a junior miner advancing its historic past-producing Idaho-Maryland mine in Nevada County, California
- The junior gold stock has given back 50 per cent year-over-year
Rise Gold (CSE:RISE) closed a US$3 million non-brokered private placement with participation from Equinox Partners.
Proceeds will go towards developing Rise’s historic Idaho-Maryland-Brunswick mine in California – which produced 2.4 million ounces of gold at a mill grade of 17 grams per tone from the 1860s to 1956 – in addition to general working capital, debt repayment and settlement of related-party fees.
The company sold 36,585,361 units priced at US$0.082, with each unit consisting of one share and one half of one share purchase warrant, and each warrant entitling the owner to purchase one additional share for US$0.15 within a three-year period.
Equinox Partners invested US$1.5 million in the financing, increasing its stake in Rise to 19.8 per cent on an undiluted basis. The company brings an over 25-year track record investing in emerging markets and precious metals mining with a focus on value, quality and contrarian positions.
Other notable buys include US$532,208 from Myrmikan Gold Fund, which owns over 10 per cent of the junior miner, as well as a US$812,144 investment from certain Rise directors and officers.
According to Friday’s news release, Idaho-Maryland-Brunswick offers considerable upside, with the previous owner intending to double production throughput before the mine was forced to reallocate resources during World War II.
Leadership insights
“We are pleased to have Equinox make this investment in Rise, initiating a strategic relationship that will contribute to the reopening of the Idaho-Maryland mine,” Joe Mullin, Rise Gold’s president and chief executive officer, said in a statement.
About Rise Gold
Rise is a junior miner advancing its historic past-producing Idaho-Maryland gold mine in Nevada County, California.
The junior mining stock (CSE:RISE) opened unchanged trading at C$0.09. The stock has given back 50 per cent year-over-year.
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