VANCOUVER – Tectonic Metals Inc. [TECT-TSXV] said it has upsized a previously announced non-brokered private placement, which is now expected to raise $3.1 million, up from the earlier $2 million target.
The company said the private placement will now consist of up to 38.7 million units priced at $0.08 per unit. Each unit consists of one Tectonic common share and one common share purchase warrant. Each whole warrant can be exchanged for a common share at an exercise price of 12 cents and will expire two years before the closing date of the private placement.
On November 15, 2022, the shares rose 7.4% to 14.5 cents on volume of 349,650, and currently trade in a 52-week range of 14.5 cents and $0.04.
Net proceeds will be used to advance the company’s Flat Gold Project, which the company describes as an intrusion-hosted, bulk tonnage gold system located in southwestern Alaska, and 40 kilometres north of the Donlin Gold Project, owned equally by Barrick Gold Corp. [ABX-TSX, GOLD-NYSE] and Novagold Resources Inc. [NG-TSX, NYSE American].
Tectonic previously said a strategic investment by Crescat Capital would be part of the non-brokered private placement. It said the private placement is being anchored by both Crescat and renowned geologist Dr. Quinton Hennigh.
Crescat is a global macro asset management firm headquartered in Denver, Colo.
In early September, 2022, the company said it was launching baseline metallurgical testwork program to investigate the potential for free-milling gold mineralization at Flat.
Tectonic is a mineral exploration company created and operated by officials who were previously involved with Kaminak Gold Corp., the company that raised $165 million to fund the acquisition, discovery and advancement of the Coffee Gold Project, a Yukon discovery that was sold to the company formerly known as Goldcorp Inc. (now Newmont Corp., [NGT-TSX, NEM-NYSE]) for $520 million in 2016.
In 2019, Techtonic raised $5.8 million, went public, and executed three exploration programs and two drill programs on the Tibbs, Northway and Seventymile projects in Alaska.
The Tibbs is located in the Goodpaster Mining District of Alaska, about 35 kilometres from Northern Star Resources Ltd.’s [NST-ASX] Pogo gold mine.
Tectonic said the Tibbs Project boasts high-grade gold mineralization at surface, in trenches and in drilling, all in relatively close proximity to the Pogo Mine.
In 2019, Tectonic completed a 2,184-metre Rotary Air Blast (RAB) drilling campaign at Tibbs, testing nine priority targets, including those generated during the previous exploration seasons.
Drilling highlights included 6.03 g/t gold over 28.95 metres, starting from a drill hole depth of approximately 18 metres. The company said this intercept is one of the strongest drill results to come out of the Goodpaster Mining District in years.