Blackrock Gold Corp (CVE:BRC) increased the size of its previously announced non-brokered private placement by C$1.75 million to C$4.5 million due to strong demand from potential investors, the company announced Tuesday.
The proceeds are expected to fund the company’s 7,000-metre drill program at its Tonopah West property in Nevada. Tonopah West is a significant landholding within a historic silver district, comprising 97 patented and 17 unpatented lode mining claims. A portion of the funds will also be used to advance exploration at its Silver Cloud property, also in Nevada.
The move raises the number of units, each of which contains one common share and one-half a share purchase warrant, by 8.75 million units to 22.5 million units, which the company is offering at a price of C$0.20 each.
READ: Blackrock Gold identifies gold and silver mineralization in historic mine dumps on Tonopah West project in Nevada
Whole purchase warrants entitle the holder to acquire an additional common share at a price of $0.30 per share for a period of three years after the units are issued.
Blackrock said it anticipates the offering closing by May 27.
The previously worked Tonopah silver district produced 174 million ounces of silver and 1.8 million ounces of gold, while Blackrock's ground yielded 2.1 million tons of total Tonopah gold and silver production.
The Vancouver-based explorer is planning a 7,000-metre reverse circulation drill program and plans to evaluate historic mineralized mine dumps and tailings surface material at Tonopah West.
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