OceanaGold and Goldcorp Invest in Gold Standard

By Nicole Rashotte

gold outlook free report

Gold Standard Ventures’ (TSX:GSV,NYSE:GSV) C$10.5-million private placement will involve significant investments from prominent gold miners OceanaGold (TSX:OGC,ASX:OGC) and Goldcorp (TSX:G,NYSE:GG).

In a press release from Gold Standard on Tuesday (August 28), the company announced a financing deal of up to 5,121,950 common shares at C$2.05 per share for gross proceeds of up to C$10.5 million.

The company plans to use the funds for continued exploration, early-stage development at the Railroad-Pinion project and for working capital purposes.


10+ Gold Stocks to Watch

Stocks.
Expert Insights.
Industry Stats.

Give me my free report!

Additionally, Gold Standard stated that they, “may also conduct a non-brokered private placement with certain other investors of up to 1,219,512 shares at the offering price for gross proceeds of up to C$2.5 million.”

For its part, OceanaGold will acquire 975,609 shares for a total of C$2-million and would own approximately 40,459,161 shares of Gold Standard, representing around 15.58 percent of the company’s issued and outstanding common shares.

In terms of Goldcorp’s interest, the company will obtain 2,926,829 shares for approximately C$6-million, increasing its stake in the explorer’s issued shares to about 13.6 percent.

Shares issued to or the consideration paid by OceanaGold or Goldcorp will exceed 25 percent of the company’s market capitalization.

All shares issued in connection with the private placement will be subject to a four-month and one day hold period under applicable securities laws.

The deal is expected to close on or around September 5th.

Gold Standard’s Railroad-Pinion project, located on Nevada’s Carlin Trend, covers 208 square kilometres and features the newly discovered Dark Star deposit, the near surface oxide-gold Pinion deposit and the classic carlin-style North Bullion deposit.

The company previously budgeted US$25.8 million in exploration fees for 2018 and the program was expected to include an estimated 74,800 metres of reverse circulation and core drilling in 381 holes.

Infill and development work at Dark Star and Pinion was expected to account for approximately 40,800 metres of drilling in 296 holes, while exploration should add another 34,000 metres of drilling in 85 holes.

Gold Standard completed a resource estimate for the Pinion deposit with results consisting of an indicated mineral resource totaling 630,300 ounces of gold and an inferred resource of 1,081,300 ounces of gold.

“We are very satisfied with the progress we have made this year on the Pinion deposit. Excellent continuity in the infill drilling should enable us to move a significant portion of the existing inferred resource to measured and indicated,” stated Jonathan Awde, CEO and director of Gold Standard.

As of 1:20 p.m. EST, Gold Standard was trading at C$2.10.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.


10+ Gold Stocks to Watch

Stocks.
Expert Insights.
Industry Stats.

Give me my free report!

The post OceanaGold and Goldcorp Invest in Gold Standard appeared first on Investing News Network.

…read more

From:: Investing News Network