BTU Metals announces C$171,000 placing to advance its Red Lake gold project

BTU Metals Corp has announced plans to raise C$171,000 via a private placing to be used for ongoing exploration at its Dixie Halo project in Red Lake, Ontario.

It comes after the junior explorer announced in October this year that it had inked a contract with Fusion Drilling of Hawkesbury, Ontario for a minimum of 2,200 meters (m) at the property.

In addition, on November 4 this year, the company announced a non-brokered private placement of 3.5 million flow-through units at C$0.09 per each for total gross proceeds of C$315,000.

BTU’s flagship project covers 19,723 hectares (Ha) and is contiguous with, and surrounds Great Bear Resources (TSX-V:GBR) Ltd’s Dixie exploration project.

This latest private placing will see 1.9 million units issued at C$0.09 each for total gross proceeds of C$171,000.

READ: BTU Metals poised for at least 2,200 meters of drilling at its Dixie Halo project in Red Lake

Each unit consists of one common share and one-half of a share purchase warrant.

Each whole warrant entitles the holder to acquire one warrant share of BTU for C$0.15 for 18 months following closing.

Closing of the offering is expected to be in the next seven days, concurrent with the closing of the flow-through financing.

Both financings are subject to the approval of the TSX venture exchange, said BTU Metals in the statement.

At Dixie Halo, BTU is focused on three targets including two gold targets, one projected to be the extension of Great Bear’s interpreted LP Fault, and the other where numerous till samples yielded high counts of gold grains (including many pristine grains).

The third target is prospective for copper-silver-gold massive sulphide mineralization.

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Story by ProactiveInvestors