Gold and Silver

Probe Gold to raise $11 million for Quebec exploration

Probe Gold to raise $11 million for Quebec exploration
Probe Gold is looking to raise more than C$15 million ($11 million) via a private placement led by Beacon Securities and Canaccord Genuity to fund its exploration efforts in Quebec.

The offering will have two parts: approximately 2 million non-flow-through shares at C$1.21 per share for over C$2.5 million, and 6.31 million flow-through shares at C$1.98 per share for C$12.5 million.

The underwriters also have an over-allotment option to buy additional shares totalling approximately C$3 million.

Probe will use the net proceeds for its flagship Novador gold project located in the Val-d’Or mining camp of Quebec. The project is host to three deposits, led by the past-producing Monique, which has a measured and indicated gold resource of 1.65 million oz.

The company recently tabled a new preliminary economic assessment that gave the Novador project an after-tax net present value (at a 5% discount) of C$910 million and an internal rate of return of 24.4%. The mine would produce an average of 255,000 oz. of gold annually over a 12.6-year life.

Probe followed up the PEA with encouraging results from its winter drilling program, highlighted by 23.1 grams gold per tonne over 3.1 metres from infill drilling at Monique and 6.2 g/t gold over 13 metres from expansion drilling at the Courvan deposit. Another 10,000-metre program is now being advanced.

In addition to Novador, Probe is also looking to advance exploration at its early-stage Detour gold project, located along the lateral extensions of Canada’s second largest gold mine at Detour Lake and the 58N gold deposit owned by Agnico Eagle Mines.

Probe Gold closed Thursday’s session 1.5% higher at C$1.37 apiece, for a market capitalization of C$235.4 million ($172m).

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