The amount was raised from the sale of 30.1 million common shares at $1.85 per share and 2.14 million common shares issued as flow-through shares at $2.68 per share.
Battle North’s key asset is the Bateman Gold Project, which is located near Red Lake, in northwestern Ontario. Battle North is a company that was previously known as Rubicon Minerals. The Bateman Gold Project has also undergone a change of name. It was previously known as the Phoenix Project.
The company owns 100% of the Bateman Gold Project, which consists of the high-grade F2 Gold Deposit, more than 14,000 metres of underground development, including a commissioned shaft that goes down approximately 730 metres below surface. The surface infrastructure includes a 1,250 tonne-per-day mill, tailings management facility and 200-person camp.
Battle North also owns a large gold exploration land package on the Long Canyon gold trend near the Nevada-Utah border in the U.S.
On Thursday, Battle North said proceeds from the sale of shares are intended to be used for pre-development and development activities, repayment of the company’s loan facility and for general working capital purposes. It said proceeds from the sale of the flow-through shares will be used to incur Canadian exploration expenses, within the meaning of the Income Tax Act, on exploration, including on the company’s Red Lake regional exploration claims.
Battle North shares eased $0.02 or 1.08% to $1.83 on volume of 166,900.
The company is currently working to complete a feasibility study at the Bateman Gold Project which it aims to deliver in the second half of 2020. The move comes after the company recently released a updated mineral resource estimate for the project of 979,000 ounces of gold in the measured and indicated categories at a 3.0 g/t cut-off.
The updated estimate marked a 21% increase from a January, 2020 estimate of 811,000 ounces, and is mainly attributable to successful infill drilling between the 854 metre and 1,098 levels.
Battle North has said the project has a sufficiently well-defined mineral resource base on which to continue mine planning and additional engineering work to determine the project’s commercial viability.
Battle North recently is on track to complete more than 5,000 metres of underground confirmatory drilling to determine the resource potential of two zones (the historic McFinley and Pen zones) located near the existing underground and surface infrastructure at the Bateman Gold Project.