Victoria Gold raises 2016 exploration funds
Last updated 12/6/2015 at Noon
Victoria Gold Corp. Nov. 26 said it has raised C$1.75 million for a 2016 exploration program at the Olive and Shamrock gold deposits at its Dublin Gulch property in Yukon Territory.
The funds were raised through a non-brokered private placement of 10,329,164 flow-through shares at C17 cents each.
"This flow-through financing enables Victoria to continue to explore the high priority Olive and Shamrock targets while preserving the hard dollars in the company treasury," explained Victoria Gold President and CEO John McConnell.
Olive lies 2,000 meters from the proposed infrastructure at the Eagle Gold project, where the company plans to develop an open-pit mine and valley heap leach operation that would produce 192,000 ounces of gold annually for roughly nine years, based on probable reserves of 92 million metric tons averaging 0.78 grams per metric ton (2.3 million ounces) gold.
Previous drill and trench results at Olive indicate the existence of near-surface mineralization to potentially feed into Eagle operations and metallurgical testing has shown the mineralization is amenable to heap leaching.
The Shamrock target is contiguous to Olive and previous drilling and metallurgical sampling completed at Shamrock suggests grades and recoveries similar to those found at Olive.
In connection with the financing, Victoria Gold paid a six percent cash finder's fee on certain orders to Secutor Capital Management Corp. and Red Cloud Capital.
Directors and officers of the company purchased 1,804,405 shares.