HighGold Mining Inc (CVE:HIGH) announced Wednesday it has closed a $3.7 million financing to advance its portfolio of high-grade gold projects in Ontario.
The company issued 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 per flow-through share for total gross proceeds of up to $3 million.
It raised an additional $700,000 by issuing another $350,000 flow-through shares priced at $2 under a shareholder’s participation exercise, bringing the total proceeds to $3.7 million.
READ: HighGold Mining unveils encouraging drill results from Munro-Croesus gold project in Timmins, Ontario
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.
HighGold paid C$180,000 in finder’s fees to Cormark Securities Inc, according to a statement.
Vancouver-based HighGold’s Canadian properties are in the Timmins gold camp, where it has a strategic footprint of 200 square kilometres in an area along the Porcupine-Destor Fault, which has generated over 110 million ounces.
The main Munro Croesus property in Timmins spans 355 hectares and includes the past-producing Croesus mine that yielded some of the highest grade gold mined in Ontario.
The group's Golden Mile property covers 8,600 hectares on the Pipestone Fault System and lies nine kilometres from Newmont's multi-million-ounce Hoyle Pond deposit, while the Golden Perimeter property covers around 12,000 hectares and played host to around 10,000 meters of past drilling in the 1980s.
HighGold’s flagship asset is the high-grade polymetallic Johnson Tract gold project in southcentral Alaska. Funds raised in this financing, however, will be used exclusively for exploration on its Canadian portfolio.
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