Moneta Gold (TSX: ME; OTC: MEAUF) has entered into an amended agreement with Stifel GMP, the lead underwriter for its recently announced $10 million private placement, to increase the size of the offering to $13 million.
Stifel will now purchase on a bought deal basis 5.0 million flow-through common shares of the company at $2.40 per share and 608,000 common shares at $1.645 each. In addition, the underwriters will have an option to purchase another 1 million flow-through shares at the same price for additional gross proceeds of up to $2.4 million.
Proceeds from the sale of flow-through shares will be used by Moneta to advance its Tower gold project in Ontario, where it is conducting drilling to infill and upgrade the mineral resource ahead of an updated preliminary economic assessment, which is expected by the third quarter of 2022.
Recent drilling has led the company to believe that there exists significant gold mineralization beyond the current resource of 4.27 million oz. indicated (147 million tonnes averaging 0.9 g/t gold) and 7.5 million oz. inferred (220 million tonnes averaging 1.06 g/t gold). These estimates are based on exploration to date on nine deposits at the Tower property.
For more details, visit www.monetagold.com.