YUKON – Victoria Gold Corp. of Toronto has raised $24 million thanks to a non-brokered private placement supported by Electrum Strategic Opportunities Fund and Sun Valley Gold. Victoria will issue 60 million units to Electrum and 20 million to Sun Valley. The units will be priced at $0.30 each.
Each unit will consist of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase a common share at a price of $0.40 for a period of three years.
Victoria Gold will use the net proceeds of this offering to continue exploration and development of its Eagle gold project, part of the Dublin Gulch property 375 km north of Whitehorse, in the Mayo district. The company is proposing an open pit mine, three-stage crushing plant, heap leaching, and a carbon-in-leach recovery plant. Pre-production capital costs are estimated to be $430 million.
The Eagle deposit has proven and probable reserves of 92 million tonnes grading 0.78 g/t Au or 2.3 million oz of gold. A mine there would produce 212,000 oz of gold per year at an all-in sustaining cost of $729 per oz.
Visit www.VitGoldCorp.com to find an image and details of the drilling that has taken place.