Net proceeds raised from the offering are for the exploration of the Cassiar gold property in British Columbia.
Cassiar Gold (TSXV: GLDC) has upsized a previously announced bought deal. Underwriters have agreed to purchase 12.7 million flow-through units of the company to be resold to charitable purchasers at a price of C$0.75 per unit.
Gross proceeds of the deal are C$9.5 million ($7m). The company also intends to complete a non-brokered private placement of flow-through units for C$0.75 each for aggregate gross proceeds of up to C$500,000.
Proceeds from the sale of shares will be used to incur “Canadian exploration expenses,” and the company intends to use the net proceeds raised from the offering for the exploration of the Cassiar gold property in British Columbia.
The Cassiar gold property spans 590 km2 and consists of two main project areas: Cassiar North, which hosts an inferred resource estimate of 1.4 million oz. at 1.14 g/t gold (cutoff grade of 0.5 g/t gold) known as the as the Taurus Deposit. The other is Cassiar South where historical underground in the area have yielded over 315,000 oz. of gold at average grades of between 10 and 20 g/t gold.
Cassiar’s shares were down over 10% in Toronto at the end of Monday’s trading. Daily volume reached over 1.1 million trades — the average daily volume is 124,445. The company has a C$42.7 million ($31.5m) market cap.
