Corvus Gold raises C$1.3m from AngloGold for Nevada projects

Mother Lode project. Image courtesy of Corvus Gold.

Corvus Gold (TSX: KOR) announced Tuesday that it has raised C$1.3 million from a subsidiary of AngloGold Ashanti through a private placement, which was closed at a significant premium of C$2.60 per share. The stock was trading at C$1.79 at market open.

Shares of Corvus Gold subsequently surged by as much as 7% during Tuesday’s session to a three-day high of C$1.91. The company’s market cap currently sits at C$209.4 million.

“We believe that the premium paid to the market price in this financing reflects the underling quality of the Corvus assets,” Corvus president and CEO Jeff Pontius said in a press release.

The Vancouver-based miner intends to use the financing proceeds for ongoing discovery and exploration in Nevada, specifically the Mother Lode and the North Bullfrog projects.

The 100% owned North Bullfrog project covers about 56 square miles in southern Nevada. The property package comprises a number of private mineral leases of patented federal mining claims and 1,134 federal unpatented mining claims.

Corvus also controls 445 federal unpatented mining claims on the Mother Lode project, which total approximately 22 square miles.

The combined Mother Lode and North Bullfrog projects contain a measured mineral resource for the mill of 9.3 Mt at an average grade of 1.59 g/t gold containing 475,000 ounces of gold, and a measured mineral resource for oxide, run of mine, heap leach of 34.6 Mt at an average grade of 0.27 g/t gold containing 305,000 ounces of gold.