HighGold Mining Inc (CVE:HIGH) (OTCQX:HGGOF) announced a flow-through financing to raise up to C$3 million gross to be used on exploration at its gold projects in the Timmins region of Ontario.
The company will place up to 1.5 million shares on a flow-through basis, which may be gifted or sold by the initial purchaser at a price of C$2.00 per flow-through share for total gross proceeds of up to C$3 million.
READ: HighGold Mining consolidates ground at Munro-Croesus gold project into single strategic position with latest acquisition
"This $3 million financing achieves the dual purpose of allowing the company to accelerate exploration at its Munro-Croesus gold project, Ontario while at the same time preserving the company's $15 million hard dollar treasury for its Johnson Tract Gold (Zinc-Copper) Project, Alaska," said Darwin Green, President and CEO of HighGold in a statement.
The offering is expected to close on or before December 23 this year.
Gross proceeds will be used to incur Canadian Exploration Expenses that are "flow-through mining expenditures", according to Canadian tax law, and will be renounced to subscribers with an effective date no later than December 31, 2020, in the amount of not less than the total amount of gross proceeds raised.
Yesterday, HighGold Mining reported that it had increased the size of its Munro-Croesus gold project in Timmins, Ontario by 40% and plans to drill there again in February next year.
The company has acquired, with cash and shares, three new properties from various arm's length vendors, consolidating its ground into one contiguous property with an area of 28 square kilometres (sq km).
Contact the author at giles@proactiveinvestors.com
