Newrange Gold Corp (CVE:NRG) (OTCMKTS:NRGOF) said it had brought in a total of C$1.5 million after it closed the second tranche of a placing for gross proceeds of C$495,000.
The funds will be used to advance its flagship Pamlico gold project in Nevada, USA, for exploration at its newly-acquired Western Fold property in the Red Lake mining area of Ontario, Canada and for general working capital, it said in a statement.
"We are pleased with the response to our financing, particularly as most of the investors are new to the company and most are institutional," said Robert Archer, Newrange's chief executive.
"This appears to signal a positive change in sentiment in our industry and is most welcome after several difficult years for junior explorers.
"Newrange is now fully financed to continue our exploration uninterrupted. Furthermore, once we have completed the monetization of our Colombian projects, that will result in additional non-dilutive funding for the balance of 2020 and into 2021," he added.
In the second tranche, the firm issued 4.95 million shares priced at C$0.10 a throw, with no warrants.
All securities issued are subject to a four-month hold period, Newrange noted in the statement.
Last week, the junior firm said the last of its underground sampling results from the Good Hope mine at the Pamlico project in Nevada, had confirmed the continuity of gold and silver throughout the workings of the former mine.
The project in the US state is home to around 8,000 meters (m) of tunnels scattered throughout the district and 300 adits (entrances) in the old workings but no maps and data.
Tying up the zones
Newrange is trying to tie up the zones of mineralization. Its underground mapping and channel sampling program at Good Hope has already identified a large, northwest striking, southwest dipping zone of continuous, near surface, oxide gold mineralization, which parallels the surface with a minimum dip extent in excess of 99 m.
It remains open along strike and down dip beyond the historic mine workings.
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