Viva Gold closes oversubscribed $4.7M placement to fund Nevada drilling
What's the deal? Viva GoldDealroom has a profile for this one. Try Dealroom → has closed an oversubscribed non-brokered private placement raising Cdn$6,500,228 (about $4.7 million), more than double the Cdn$3.0 million it originally set out to raise. The TSX Venture-listed miner issued 40,626,425 units at Cdn$0.16 each, with each unit carrying one common share and half a warrant exercisable at Cdn$0.24 until September 9, 2029.
What's the endgame? Viva Gold plans to advance its 100%-owned Tonopah Gold Project in Nevada on several fronts at once. Proceeds fund follow-up drilling at the new high-grade Midway Hills discovery, engineering and environmental work for its Prefeasibility Study, and preparation of the Mine Plan of Operations needed to start permitting.
Who's backing it? Insiders acquired 8,105,800 units, a related-party transaction under Canadian securities rules that was exempt from valuation and minority-approval requirements. Chief executive officer Jim Hesketh said insider participation "reflects confidence in our Board and management."
The fine print: Viva Gold will pay Cdn$106,410 in finder's fees plus 665,062 warrants to firms including Canaccord GenuityDealroom has a profile for this one. Try Dealroom →, Ventum FinancialDealroom has a profile for this one. Try Dealroom →, and Red Cloud SecuritiesDealroom has a profile for this one. Try Dealroom → that introduced subscribers. The offering remains subject to final exchange approval.
The signal: The oversubscription, at more than double the target, points to renewed investor appetite for junior gold explorers with fresh discoveries. For Viva Gold, the extra capital lets it pursue exploration and permitting in parallel rather than in sequence.
Read more: stockwatch.com
Image credit: James St. John
