Probe will issue approximately 6.3 million flow-through shares priced at $1.98 each.
Probe Gold, Beacon Securities and Canaccord Genuity have entered into a purchased private placement agreement that will raise around $15 million. Proceeds will go towards exploration and drilling at Probe’s Novador and Detour gold projects. Probe owns 100% of both projects.
Probe will issue approximately 6.3 million flow-through shares at a price of $1.98 each, for gross proceeds of $12.5 million. A further 2.1 million non-transferable shares will be issued at a price of US$1.21 each for gross proceeds of US$2.5 million. The underwriters have also been granted the option to purchase additional shares worth US$3 million of any designation.
The multi-million ounce Novador project is located near Val d’Or, Quebec. It has measured and indicated resources of 68.0 million tonnes grading 1.62 g/t gold and inferred resources of 16.7 million tonnes grading 2.03 g/t gold. According to the preliminary economic assessment presented in February, there are more than 3.5 million ounces. and 1.1 million ounces. gold in the respective categories.
The Novador project has an estimated capital expenditure of US$602.3 million plus sustaining capital of US$817.5 million for a mine life of 12.6 years. The net present value before taxes discounted at 5% is $1.53 million and the internal rate of return is 34.4%. Recovery of capital expenditure would be achieved in 3.5 years.
The early-stage Detour project is adjacent to Agnico Eagle Mines’ Detour Lake gold mine near Cochrane, Quebec. An active drilling program is underway.
