- Sego Resources is announcing a $500,000 non-brokered private placement
- Proceeds will be expended on continued exploration on the company’s Miner Mountain project, near Princeton, B.C.
- Financing is a critical minerals flow-through offering a 30-percent federal tax credit
- The funds will be focused on diamond drilling at the Cuba Zone
Sego Resources (TSXV:SGZ) is announcing a $500,000 non-brokered private placement. The raise will include critical minerals flow-through units at $0.04 per unit and non-flow-through units at $0.02 per unit.
The placement may close in several tranches and insiders may participate in the private placement.
Sego Resources CEO Paul Stevenson points out this is an ideal time of year for investors to take advantage of the tax benefits granted with flow-through financing. Stevenson shares his opinion that critical minerals financing is “the best flow through that you could buy,” especially for British Columbia residents.
Stevenson clarifies that, buying flow-through from a gold company – which is not a critical mineral – investors receive a 15 per cent tax credit from Canada and a 20 per cent tax credit from British Columbia. With copper as a critical mineral, shareholders get 30 per cent, which is twice the benefit from Canada as well as the 20 per cent for British Columbia, for a total 50 percent tax credit.
The proceeds will be used for continued exploration on the company’s 100-per-cent owned Miner Mountain project. The copper-gold alkalic porphyry project is near Princeton, B.C., 15 kilometres north of HudBay Minerals’ producing Copper Mountain Mine and has $5.8 million previously invested in exploration.
The funds will be focused on diamond drilling, starting this season with a news flow in January. Stevenson highlights the location has very little snow and drilling has successfully occurred previously in winter conditions.
The project has two major zones, the Cuba and the Southern Gold Zone, which Stevenson believes is related to a porphyry copper.
The Cuba Zone will be Sego’s first target. Stevenson notes the prior work completed in summer showed the depth of mineralization was cut off.
“We found one hole went through that cut-off and found the root porphyry copper of excellent grades, and that’s what we’re going to drill in,” he said.
The company also plans to utilize British Columbia Instrument 45-536 that opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person who is registered as an investment dealer in the jurisdiction.
Sego Resources also received an environmental care award. Stevenson credits Sego’s reclamation program and the First Nations.
“We do reclamation immediately, seeding, fertilizing. Every time we leave that property, all reclamation has been completed,” Stevenson said.
For more information on Sego Resources, check out www.segoresources.com.
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