Yukon-focused explorer Snowline Gold (CSE: SGD) has completed the first tranche of its previously announced private placement, issuing 7 million flow-through common shares priced at $1.40 each and 10 million units at $1.25 each, for aggregate gross proceeds of $22.3 million. Each unit comprises one common share and one-half of a common share purchase warrant, with each whole warrant exercisable for one common share at $2.50 per share.
The second and final tranche of the financing, comprising the issuance of 2.34 million additional units for additional gross proceeds of $2.93 million, is expected to close on or around Aug. 2.
Proceeds of the offering will be used to advance the company's Yukon Territory mineral properties. Snowline has a seven-project portfolio covering over 1,270 sq. km in the Tintina gold province, which is host to multiple million-ounce gold deposits including Kinross Gold's (TSX: K; NYSE: KGC) Fort Knox mine, Newmont's (TSX: NEM; NYSE: NGT) Coffee deposit, and Victoria Gold's (TSX: VGCX) Eagle mine.
"With the close of this first tranche, Snowline is well funded to explore through the next two field seasons," Scott Berdahl, CEO and director of Snowline, commented. "The funds also allow us to accelerate our exploration plan, effectively bringing drill holes we'd anticipated for 2023 into the current season, and from 2024 into 2023."
Snowline recently commenced an 8,000-metre drill program to follow up on previous discoveries made on its flagship Rogue and Einarson properties located in the underexplored Selwyn Basin. Drilling at the Rogue project's Valley zone has so far encountered 415 metres of nearly continuous mineralization downhole from bedrock surface, indicating a robust mineralizing system.