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Northway completes IPO to explore Healy

 

Last updated 9/13/2019 at 4:22am

Newmont Goldcorp gold exploration property near Pogo gold mine

Jesse Anderson, Midnight Sun Drilling

A track mounted reverse circulation rig tests the first target at Northway Resources' Healy gold project in Alaska's Goodpaster Mining District.

Northway Resources Corp., a new company with two gold exploration properties in Alaska, Aug. 26 announced the completion of an initial public offering and listing on the TSX Venture Exchange.

"We are very excited about closing this transaction and being listed as a new public company on the TSXV," said Northway Resources President and CEO Zach Flood. "Northway Resources was founded last year with the primary focus to explore for gold in Alaska."

Northway is currently focused on exploring Healy, a discovery stage gold project in the Goodpaster Mining District that was generated by Newmont Goldcorp over four years of exploration that began in 2010.

Newmont identified Healy as a priority target after carrying out analysis of a large swath of Alaska's Eastern Interior region. Follow-up soil sampling on this property about 45 kilometers (28 miles) southeast of Northern Star Resources Ltd.'s Pogo gold mine identified three 1,000 to 2,000-meter long gold-arsenic-antimony anomalies.

Based on the large soil anomaly and encouraging results from the backpack drilling, a technical report completed for Healy at the end of 2018 recommends using a reverse circulation drill to drill fences of holes across the main zone identified at Healy.

Northway cut a deal with Newmont to earn up to a 70 percent joint venture interest in Healy by completing at least US$4 million of exploration on the property by the end of 2022.

Northway is beginning is working toward meeting its earn-in commitment this year with an RC drill program similar to the one outlined in the technical report.

"The Healy project, which we have optioned from Newmont Goldcorp, presents significant opportunities for Northway in the Goodpaster Mining District, host of the Pogo gold mine," said Flood. "We have the advantage of picking up where Newmont left off, following multiple years of systematic regional exploration which has led to the definition of numerous drill-ready targets which have never been tested. We look forward to updating the market with drill results this fall as they become available."

Northway's second Alaska gold project, Napoleon, is located near the community of Chicken in the Fortymile Mining District. While more than 600,000 ounces of placer gold has been mined from the streams and benches in the Fortymile district, a large lode source of this alluvial aurum has yet to be discovered.

Newmont Goldcorp gold exploration property near Pogo gold mine

Shane Lasley

Northway Resources Vice President of Exploration Luke van der Meer (left) and geologist Thomas Hawkins mark the first hole for 2019 drilling at the Healy gold project about 28 miles southeast of the Pogo Mine.

To fund its exploration, Northway raided C$1.85 million through an IPO that involved the issuance of 18.49 million shares at C10 cents each.

A cash commission equal to 7 percent of the gross proceeds of the offering was paid to Haywood Securities Inc. and Echelon Wealth Partners Inc. and their selling group members, as well as a corporate finance fee of C$35,000, plus applicable taxes. The agents also received non-transferable warrants to acquire up to 1.29 million Northway shares for C10 each until Aug. 22, 2021.

Northway shares are listed on the TSX Venture Exchange under the trading symbol NTW.

Northway also split 2 million incentive stock options exercisable at C10 cents per option among its directors and officers. The company also completed a concurrent non-brokered private placement of 6.9 million shares at C10 cents per share on Aug. 28 to fund general working capital.

–Shane Lasley

 

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