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HighGold Mining, Constantine Metal spin-off, receives conditional OK to list on TSX Venture

In connection with the TSX listing, HighGold also said it expects to close a non-brokered private placement that raised C$7.65 million

Constantine Metal Resources Ltd. - HighGold Mining Inc, formerly Constantine Metal Resources Ltd, has received conditional approval from the TSX Venture Exchange for a public listing of its common shares
High Gold’s mining assets include projects in Alaska, Ontario and the Yukon

HighGold Mining Inc, which is being spun-out of Constantine Metal Resources Ltd (CVE:CEM) has received conditional approval from the TSX Venture Exchange for a public listing of its common shares. 

The company will be listed as a Tier 2 issuer on the exchange under the symbol HIGH, and trading in the shares is expected to occur in mid-September, according to a statement.

In connection with the TSX listing, HighGold also said it expects to close a non-brokered private placement of 17 million units at a price of $0.45 per unit for gross proceeds of C$7.65 million

READ: Constantine Metal Resources completes spin-out of gold assets to HighGold Mining

The company said each unit will consist of one share and one half of one non-transferable common share purchase warrant, with each one exercisable to purchase one share at a price of $0.70 for a period of two years from the issue date. 

Upon listing and completion of the private placement, HighGold said it will have 33,118,075 shares issued and outstanding.

HighGold said investor Rob McEwen purchased 2,222,200 Units (or C$1 million) through his wholly-owned company, Evanachan Limited, for 10.1% of HighGold on a partially diluted basis.

Also participating: A senior North American gold producer purchased 2,190,000 units (C$0.99 million) for 9.9% of HighGold on a partially diluted basis; and a partnership managed by an affiliate of the Sprott Group purchased 3,175,555 Units (C$1.4 million) for 14.4% of the company. 

"With exceptional exploration assets, healthy treasury, quality shareholder list, and strong board of directors and management team, HighGold is well positioned for success,” said CEO Darwin Green.

“We look forward to providing the market with meaningful updates on the results of the exploration program at the company's flagship Johnson Tract gold project (in Alaska), which is currently underway."

Proceeds from the private placement will be used to fund exploration and development of HighGold's mineral properties, as well as for general working capital and other corporate purposes.

Other news

Following the listing on the TSX, HighGold said it will issue replacement certificates to the holders of stock options and warrants of Constantine Metal Resources. Pricing of those replacements will be set based on the five-day average closing price of the shares following listing.

In other company news, HighGold also announced it’s issuing 1.6 million stock options to consultants, officers and directors of HighGold. Each stock option has an exercise price of $0.45 per share and expires September 16, 2024. 

High Gold’s mining assets include projects in Alaska, Ontario and the Yukon

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Quick facts: Constantine Metal Resources Ltd.

Price: 0.265 CAD

TSX-V:CEM
Market: TSX-V
Market Cap: $12.02 m
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