Snowline Gold says $999,999 private placement will fund Ursa project development

Snowline Gold Corp (CSE:SGD) (OTCQB:SNWGF) said it has closed a previously announced non-brokered private placement of 2,857,142 units at a price of C$0.35 per unit for total proceeds of C$999,999.70. 

The capital will be used to advance the company’s Ursa gold and base metals project in Yukon, Canada. 

Snowline also disclosed that Crescat Capital LLC has been granted a pre-emptive right to maintain its pro-rata interest pursuant to the terms of an investment agreement, as long as Crescat continues to hold 2% of Snowline’s common shares. 

READ: Snowline Gold says Crescat investment is a ‘compelling endorsement’ of its Ursa gold and base metals project

Focused on gold exploration in the Yukon, Snowline Gold holds a seven-project portfolio covering over 90,000 hectares.  

Under the private placement, each unit consists of one common share and half of one common share purchase warrant, valid for a year and entitling the holder to purchase one common share priced at C$0.53.

Earlier this month, Snowline released encouraging drill findings from the first phase drilling at the Jupiter zone of its Einarson project, which indicates an extensive epizonal orogenic gold system. 

According to the company, the drill program is nearly complete with around 1,560 metres (m) of core recovered from the Callisto target at Jupiter, with all nine holes hitting a structure down to depths of 100m and along a 230m-long trend.

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Story by ProactiveInvestors