Moneta Gold (TSX: ME; FSE: MOPA) is raising $20 million in two separate placements - $16 million in flow-through shares and $4 million in hard dollar shares. The approximately 10.7 million flow-through shares are priced at $1.50 each. The proceeds to be spent on eligible Canadian exploration expenses. A further 3.8 million hard dollar shares at a price of $1.06 each will raise about $4 million for working capital and general corporate purposes.
The underwriters, led by National Bank Financial, have been granted the option to increase the offering by 30% any time up to 48 hours prior to closing. Closing is expected on or about May 17, 2023.
Moneta’s flagship project is the 100%-owned Tower gold project, located 100 km east of Timmins, Ont. The project hosts an indicated resource of 4.5 million tonnes grading 0.92 g/t gold (4.5 million oz.) and an inferred resource of 235.6 million tonnes at 1.09 g/t gold (8.3 million oz.). About 85% of the tonnage is recoverable by open pit methods.
A preliminary economic assessment for the Tower project was released in November 2022. On an after-tax basis the project has a net present value (5% discount) of $1.1 billion and the internal rate of return is 31.7%. All-in sustaining costs are estimated at US$1,073 per oz. of gold.
The initial capital requirement is $517 million, which would be recovered in 2.6 years of operation. This would be followed by $886 million for sustaining costs, $78 million for closure costs, and $10 million for salvage costs. The mine will have a 23.8-year life averaging 193,000 oz. of gold each year.
The entire 43-101 report can be read on www.MonetaGold.com.
May 8, 2024
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