North of 60 Mining News - The mining newspaper for Alaska and Canada's North

U.S. GoldMining Inc. April 24 announced that it has closed a US$20 million initial public offering that provides the newly minted company with funds for the exploration and development of the Whistler copper-gold-silver project in Alaska.

"The launch of U.S. GoldMining supports our confidence in the potential for the Whistler Project and stands testament to the caliber of our team," U.S. GoldMining CEO Tim Smith said upon the completion of the IPO. "U.S. GoldMining is now well positioned, with a strong treasury and experienced management team, in order to create value at the project."

Lying adjacent to Nova Minerals Ltd.'s Estelle gold project about 100 miles west of Anchorage, Alaska, the 42,000-acre Whistler property hosts 118.2 million metric tons of indicated resource averaging 0.51 grams per metric ton (1.94 million ounces) gold, 2.19 g/t (8.3 million oz) silver, and 0.16% (422 million pounds) copper; plus 317 million metric tons of inferred resource averaging 0.46 g/t (4.67 million oz) gold, 1.58 g/t (16.1 million oz) silver; and 0.1% (711.4 million lb) copper.

These resources are based on 70,247 meters of diamond drilling completed in 257 holes from 1986 to the end of 2011. Of these holes, 52 were drilled in the Whistler deposit area, 94 holes in the Raintree West area, and 36 holes in the Island Mountain area. Another 75 holes were drilled across the wider property.

In addition to extensive drilling, Kiska established an airport and camp near Whistler and Raintree West, and roads that allow for easy access to these deposits at the north end of the property. Island Mountain, which lies about 14 miles south of the camp, must be reached by helicopter.

GoldMining Inc., then known as Brazil Resources, acquired the Whistler project from Kiska Metals in 2015.

The company leadership decided that the best way to unlock Whistler's value was to spin the project out into an independent U.S.-listed company.

U.S. GoldMining Inc.

Located about 100 miles northwest of Anchorage, the Whistler project lies at the western end of the proposed Western Susitna Road and along the route of the proposed 300-mile natural gas pipeline for the Donlin Gold Mine project.

Toward this strategy, U.S. GoldMining was listed on Nasdaq with an IPO that involved the issuance of 2 million units a US$10 per unit. Each unit consists of one share of U.S. GoldMining and one warrant that allows the holder to purchase an additional share for US$13 over the next three years.

U.S. GoldMining plans to use the net proceeds from the offering to fund exploration and development at Whistler, as well as repay funds advanced by GoldMining and for working capital.

"The successful IPO of U.S. GoldMining is a momentous event that we believe firmly positions us to advance our strategy of unlocking value from the Whistler Project, located in Alaska, one of the world's top mining jurisdictions," said U.S. GoldMining Chair Alastair Still. "We are excited by the potential growth opportunities of the Whistler Project, which hosts one of the largest gold-copper resource estimates in the Americas still in the hands of a junior explorer and developer."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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