Resolution Minerals (ASX: RML) will raise $3.6 million through a placement with the cornerstone investor being a new resources merchant bank that is working to become listed in Toronto.
The placement at $0.07 per share, with a $1 million share purchase plan (SPP) to follow, will finance ongoing drilling at Resolution’s 64North project in Alaska.
Palisades Goldcorp leads a group of institutional and sophisticated investors backing the placement.
Both the placement subscribers and shareholders taking up the SPP will also receive a one for one option expiring in three years and exercisable at $0.12 per share.
The 64North project lies within the Tintina gold province, Alaska, which hosts more than 80 million ounces of gold, including Novagold’s million-ounce Donlin Creek deposit. Other large deposits include Fort Knox and Livengood.
64North surrounds the Pogo mine, owned by Northern Star Resources (ASX: NST), which has so far produced 4Moz of gold at an average grade of 13.6 grams per tonne. Pogo has a total endowment of 10Moz of gold and is currently producing at a rate of 300,000oz per annum.
Resolution is due to release an operations update on exploration at the project in the coming days.
Resolution says raising is a strong endorsement
Managing director Duncan Chessell said Palisades Goldcorp’s strategic investment is a strong endorsement of the upside value Canadians see in the 64North project.
With a portfolio of C$160 million (A$168 million) of resource equities, Palisades Goldcorp is Canada’s new resource-focused merchant bank.
It offers investors exposure to a diversified portfolio of junior and micro-cap resource stocks via private placement financings.
Palisades Goldcorp claims it is the first investment vehicle of its kind in the natural resource sector.
It is also backing the Canadian initial public offering for New Found Gold, the largest landholder in the province of Newfoundland, and controls a 105km stretch of the Central Newfoundland gold belt.
In November 2019, New Found Gold made a major discovery with its very first drill hole —19m at 92.9g/t gold at its 100% owned Queensway project. The company claims this is the best drill intercept ever recorded in the province’s history.
Alaska work now targeting undrilled prospect
Resolution is targeting the 2km by 5km Aurora prospect within 64North which has never been drilled.
Aurora has been a priority zone with host rocks, surface geochemistry, structures and geophysical signature that, in the company’s view, make it a lookalike not only to Pogo but Northern Star’s Goodpaster discovery just 450m from Resolution’s tenement boundary.
Resolution will also use the post-Spring thaw to conduct geophysical surveys at the Echo and West Pogo prospects in an effort to define new drill targets.
The Echo prospect is directly down dip from the Goodpaster discovery.