Viscount Mining Corp (CVE:VML) (OTCQB:VLMGF) announced Wednesday that it had closed an oversubscribed private placement that raised C$5.75 million for exploration work on its Silver Cliff project in Colorado.
The Vancouver-based firm is in the final planning stages of preparing for a drill program slated to begin in August at Silver Cliff, where it expects to expand its existing open pit resource.
Viscount originally planned to raise C$4 million but filed a price reservation form to increase the size to $5 million and sought approval for an over-allotment of 15% for total proceeds of $5.75 million.
The financing consists of just under 24 million units priced at C$0.24, with each unit consisting of one share and one warrant exercisable at $0.32 for a two-year term.
A portion of the proceeds will also go towards ongoing working capital requirements, according to a statement.
In connection with the closing, Viscount paid cash commissions of nearly $344,000 and issued 1.4 million finder’s warrants under the same terms as the warrants issued in the private placement.
Viscount said it will continue to drill with the objective of adding to the KSR resource estimate as well as moving forward on the evaluation of resource potential on three other areas of historic deposits at Silver Cliff.
According to the resource estimate, the Kate deposit contains 2,064,000 tonnes of indicated mineral resource averaging 84 grams per ton (g/t) of silver for 5,560,000 ounces of silver and 3,172,000 tonnes of inferred mineral resource averaging 70 g/t of silver for 7,143,900 ounces of silver.
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