Gold79 Mines (TSXV:AUU)(OTCQB:AUSVF) has announced a non-brokered private placement to raise gross proceeds of up to $500,000 from the placement of up to 15,666,667 units priced at $0.03 per unit. The company is focused on building ounces in the Southwest USA, where it holds 100% earn-in options on three gold projects in the Walker Lane.
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Gold79 Mines Ltd. (TSXV:AUU)(OTCQB:AUSVF) has announced a non-brokered private placement.
The company is looking to raise gross proceeds of up to $500,000 from the placement of up to 15,666,667 units priced at $0.03 per unit.
The units consist of 1 share and 1 warrant, with the warrant exercisable at $0.05 for 36 months, subject to an acceleration clause.
In addition to the accredited investor exemption, the units will be offered under the existing security holder exemption.
The shares are currently trading at $0.025.
The company is focused on building ounces in the Southwest USA, where it holds 100% earn-in options on three gold projects in the Walker Lane.
Approximately half on the net proceeds will be used for property and claim payments and exploration expenditures related to the Gold Chain, Arizona project; the Jefferson Canyon, Nevada project; and, the Tip Top, Nevada project.
Approximately 30% will be used for working capital and general corporate purposes and approximately 20% will be used to pay management fees to company officers.
In April, the company completed a mapping and sampling program of the 200-foot level of the Tyro mine at the Gold Chain project.
Results from the chip-channel sampling returned similar grades and widths to the fall 2021 drill program, approximately 600 metres south of that drilling.
Sampling highlights included 25.4 metres at 2.53 g/t gold and 12.7 metres at 2.44 g/t gold.
In June, the company completed additional mapping and sampling at the Sheep Trail Mine Area within its Gold Chain project.
In April, the company announced that it was recently granted access to a number of paper documents related to the exploration and project development work completed at Jefferson Canyon in the late 1980's.
The documentation included exploration results, detailed drill logs for all known holes, preliminary metallurgical work, a small-scale development plan, detailed sections and maps, and historical surface sampling.
The new data confirmed management’s view that Jefferson Canyon has the potential to be a large disseminated mineralized system containing some higher-grade zones.
Tip Top contains a low-sulphidation epithermal gold-silver vein system on a 1,196-hectare land package.
Previous drilling returned impressive results at this historic past-producing mine and recent work has identified a 5 kilometre plus gold-in-soil anomaly.
In addition, Gold79 holds two projects with minority interest being a 36.6% interest in the Greyhound Project, Nunavut, Canada under joint venture by Agnico Eagle Mines Limited and a 20% carried interest in the Taviche Project in Oaxaca, Mexico now under option to Fortuna Silver Mines Inc.
Derek Macpherson, President and CEO, stated: "While we are drill ready at Gold Chain and expect to receive drill permits to be drill ready in the near-term at Jefferson Canyon, market conditions suggest that these programs may have to wait. This financing puts us in a position to both weather the current market and pursue other corporate initiatives. Management expects to demonstrate their commitment to the Company by subscribing for a significant component of the financing, while at the same time the CEO and Executive Chairman have voluntarily reduced their compensation by 50%."
For more information, please visit the company’s website at www.gold79mines.com, contact Derek Macpherson, President and CEO, at 416-294-6713 or by email at dm@gold79mines.com.
