Battle North Gold (TSX: BNAU) (previously Rubicon Minerals) is raising C$55 million in an upsized bought deal (from C$45 million previously) co-led by Cormark Securities and Stifel GMP for exploration, pre-development and development work at the Bateman gold project in the Red Lake district of Ontario.
In addition, the proceeds may be used for working capital and repayment of the company’s C$14.2-million loan with Sprott Private Resource Lending, which matures on Dec. 31, 2021.
The offering includes 27 million common shares, sold at C$1.85 each, as well as 1.9 million flow-through shares, at C$2.68 each, for gross proceeds of C$55 million. The underwriters have the option to purchase up to an additional 3.2 million common and 279,855 flow-through shares for 30 days following closing, which is expected around Aug. 27.
A feasibility study for the Bateman project is expected in the second half of this year
Earlier this month, Battle North released drill and chip sample results from the McFinley zone, approximately 420 metres west of the F2 gold deposit at Bateman.
Notable intercepts included 1.6 metres of 7.36 grams gold per tonne; 0.2 metre of 191 grams gold per tonne; and 0.3 metre of 134 grams gold.
According to the company, these initial results suggest potential to derive future incremental mill feed from this zone, to supplement the production profile at Bateman.
Additional work is underway to better understand the mineralization at the McFinley zone. McFinley features a historic (non NI 43-101 compliant) resource estimate of 303,000 tonnes grading 6.86 grams gold, which extends down to a depth of 122 metres. The results to date from this area support the historical drill intercepts.
A feasibility study for the Bateman project is expected in the second half of this year.
Over the last year Battle North’s shares have traded in a range of 55¢ and C$2.25 and at presstime were changing hands for C$1.84. The company has a market cap of C$176.3 million based on 95.8 million common shares outstanding.
(This article first appeared in the Canadian Mining Journal)