VANCOUVER – Nevada King Gold Corp. [NKG-TSXV, VKMTF-OTCQB] said Monday it is upsizing a previously announced non-brokered private placement financing. The company now expects to raise $11.25 million by issuing 25 million common shares priced at 45 cents per share. That compares to the earlier $6.79 million target announced on April 5, 2022.
The company said has been able to upsize the financing after Nevada King CEO Collin Kettell agreed to increase his subscription to $4.5 million. As a result, participation by management and insiders will account for roughly half of the financing.
Nevada King shares advanced on the news, rising 4.0% or $0.02 to 52 cents on volume of 425,140. The shares are currently trading in a 52-week range of 84 cents and 27 cents.
Nevada King is the third largest mineral claim holder in the State of Nevada, behind Nevada Gold Mines (Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] / Newmont Corp., [NGT-TSX, NEM-NYSE]), and Kinross Gold Corp. (K-TSX, KGC-NYSE). Starting in 2016, the company staked large project areas hosting significant historical exploration work along the Battle Mountain trend located close to current and former producing mines.
The company said these project areas were initially targeted based on their potential for hosting multi-million-ounce gold deposits and were subsequently staked following a detailed geological evaluation.
District scale projects in Nevada King’s portfolio include the 100% owned Atlantic Mine, located 100 kilometres southeast of Ely, the Lewis and Horse Mountain Mill Creek projects, both located between Nevada Gold Mines’ large Pheonix and Pipeline mines, and the Iron Point project located 35 kilometres east of Winnemucca.
When the private placement closes, Nevada King will have working capital in excess of $23 million, funds that will underpin its plans to aggressively pursue exploration activity on its land holdings on the Battle Mountain Trend.
In keeping with that plan Nevada recently bolstered its technical team by appointing three ex-Newmont geologists, Lewis Teal, Mac Jackson and Mike Bersch.
Nevada King recently announced maiden drilling results from its Atlanta gold mine project, which is located on the Battle Mountain Trend northeast of Las Vegas, Nevada.
The program included 63 reverse circulation (RC) holes for a total of 6,400 metres. Highlight assays from the first eight holes include 22.9 metres of grade 2.17 g/t gold in hole AT21-41A from 38.1 metres to 61.0 metres and 35 metres of grade 1.17 g/t gold in hole AT21-41B from 38.1 metres to 73.2 metres.
The company said these intercepts confirm historical mineralization reported in RC holes drilled in the 1980s that were not included in the Gustavson 2020 pit-constrained resource model due to high detection limits on the gold assays and inexact historical collar locations prepared by Gustavson Associates.
The 2020 Gustavson work estimates a pit-constrained measured and indicated resource of 460,000 ounces grading 1.3 g/t gold and an inferred resource of 142,000 ounces of gold, grading 0.83 g/t gold at Atlanta.