Victoria Gold raising C$5m in flow-through financing

Eagle Mine. Image by Victoria Gold Corp.

As it ramps up the Eagle gold mine in Canada's Yukon Territories, Victoria Gold has announced a C$5 million flow-through financing, intending to issue 572,659 flow-through shares at C$8.73 each. It has the option, exerciseable until closing, of issuing an additional 114,532 shares for proceeds of C$1 million. Closing is expected around Feb. 25 with the securities issued subject to a four-month hold.

The shares issued will be Canadian development expense flow-through shares, with gross proceeds used for qualifying Canadian development expenses.

Based on the results of an updated technical report for Eagle released in December, the mine is expected to produce an average of 220,000 oz. annually at all-in sustaining costs of $774 per oz. Victoria's latest guidance is for a commercial production announcement in the second quarter of the year.

(This article first appeared in the Canadian Mining Journal)