Sitka Gold (SIG-V) Closes $5.5 Million Private Placement
Sept 6, '24 - NR
Sitka Gold Corp. has closed a non-brokered private placement for aggregate gross proceeds of $5.5-million through the issuance of 27.5 million units sold at a price of 20 cents per unit.
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of the company at a price of 38 cents for a period of 36 months from the date of issuance.
Crescat Capital and its principals invested a total of $2.5-million in the offering. Crescat is a global macro asset management firm headquartered in Denver, Colo., that deploys tactical investment themes based on proprietary value-driven equity and macro models. Crescat has been taking friendly-activist stakes in the precious metals exploration industry today as one of its key macro themes.
Crescat's geologic and technical director, Quinton T. Hennigh, PhD, commented: "I believe Sitka's RC gold project is proving to be one of the highest-quality reduced-intrusion-type gold discoveries in the Yukon. Long runs of consistent, high-grade gold encountered in recent drilling around the southern perimeter of the Blackjack target point to a very robust, potentially fully preserved gold system at depth. As the company has stepped into this area with their drill program, the results continue to validate our reasons for investing. We take pride in identifying and supporting discovery-stage stories like this. Given the opportunities in the distressed mining capital markets right now, we feel compelled to support Sitka as they drill this discovery."
"We would like to thank Crescat Capital and the other shareholders who helped make this financing possible," said Cor Coe, chief executive officer and director of Sitka Gold. "Crescat's increased investment in Sitka is a considerable endorsement of our flagship RC gold project, and we look forward to realizing the full potential of this exciting district-scale property."
The company intends to use the net proceeds of the offering on exploration work on its mineral properties, including the RC gold project in Yukon, and for general working capital.
The offering remains subject to final acceptance from the TSX Venture Exchange. All securities issued pursuant to the offering are subject to a hold period expiring on Jan. 7, 2025, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. No finders' fees were paid in connection with the offering.
About Sitka Gold Corp.
Sitka Gold is a well-financed mineral exploration company headquartered in Canada. The company is managed by a team of experienced industry professionals, and is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka is currently advancing its 100-per-cent-owned, 431-square-kilometre flagship RC gold project within the Tombstone gold belt in the Yukon Territory. The company is also advancing the Alpha gold project in Nevada, and currently has drill permits for its Burro Creek gold and silver project in Arizona and the Coppermine River project in Nunavut.
In 2023, the company announced a National Instrument 43-101-compliant initial mineral resource estimate (MRE) of 1.34 million ounces of gold at its RC gold project, beginning at surface and grading 0.68 gram per tonne (see news release dated Jan. 19, 2023) (1). The initial mineral resource estimate comprises the Blackjack deposit (900,000 ounces of gold grading 0.83 g/t gold) and the Eiger deposit (440,000 ounces of gold grading 0.50 g/t gold), both of which remain open in all directions.
The company is currently drilling at its year-round, road-accessible RC gold project in Yukon and has completed an additional 32 diamond drill holes totalling 13,500 metres since the MRE was announced. Drilling continues to expand upon the MRE with the most recently announced drill hole results from DDRCCC-24-062 (hole 62) returning 290.5 m of 1.10 g/t gold, including 105.0 m of 1.68 g/t gold and 34.5 m of 2.61 g/t gold (see news release Aug. 19, 2024).
(1) Simpson, R., Jan. 19, 2023, "Clear Creek Property, RC Gold Project, NI 43-101 Technical Report, Dawson Mining District, Yukon Territory."
The scientific and technical content of this news release has been reviewed and approved by Cor Coe, PGeo, director and chief executive officer of the company, and a qualified person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
" Donald Penner "
President and Director
For more information contact:
Donald Penner
President & Director
778-212-1950
dpenner@sitkagoldcorp.com
or
Cor Coe
CEO & Director
604-817-4753
ccoe@sitkagoldcorp.com
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