Corvus Gold (TSE:KOR)(OTCQX:CORVF) announced Tuesday a C$5.0 million non-brokered private placement financing, with proceeds to be used to fund ongoing work at its North Bullfrog project in Nevada.
The offering, in which company insiders are expected to participate,
will consist of up to 7.5 million common shares at a price of 67
Canadian cents each.
The company said no new insiders will be created from the private
placement, nor will there be any change of control. Finder's fees will
also not be paid in connection with the offering.
Aside from using the funds for North Bullfrog, proceeds will also be used for general working capital purposes.
The North Bullfrog project is currently being evaluated as a two stage development opportunity with a low initial capex.
In late February, the company unveiled an independently prepared Preliminary Economic Assessment (PEA) for the Nevada project.
The PEA produced an economic analysis for a conceptual, low capex,
heap leach project that generates average annual gold production of
57,700 ounces over 12.8 years, indicating a pre-tax, pre-royalty net
present value of $118.3 million and an internal rate of return of 28.8
percent at a $1,300 per ounce gold price and a five percent discount
a resource exploration company, focused in Nevada, Alaska and Quebec,
said that the PEA also shows the project has a considerable leverage to
gold price, with a pre-tax, pre-royalty net present value of $338
million and an internal rate of return of a whopping 70 percent at a
$1,700 per ounce gold price.
Total initial capital expenditure is seen at $68.8 million with a
2.6-year payback period for the project, which has a large in-pit
resource of 1.1 million ounces contained and 747,000 ounces of
Closing of the private placement is subject to the approval of the TSX Exchange.