NEW YORK, Sept. 22, 2020 /PRNewswire/ -- As gold prices near all-time highs, mining companies are finding more opportunities for funding than they have seen in years. Mining companies raised a total of $1.48 billion in August according to BMO Capital Markets, making August 2020 the biggest month for mining funding in more than six years. Investors are looking to capitalize on the ongoing gold run by throwing money at gold explorers and producers with prime mining assets that are set up for big returns. This past month was packed with examples of junior and intermediate receiving non-brokered private placements and bought-deal financings, with major investments heading to companies like Blackrock Gold Corp. (TSX-V: BRC) (OTCQB: BKRRF), PureGold Mining Inc. (TSX-V: PGM), Orefinders Resources Inc, (TSX-V: ORX), StrikePoint Gold Inc. (TSX-V: SKP), and First Mining Gold Corp. (TSX: FF).
Blackrock Gold Corp. (BRC.V) (BKRRF.QB) Receives Major Investment From Billionaire Eric Sprott
Blackrock Gold Corp. announced on August 4 that the company had closed a C$7.5 million private placement, led by a C$5 million investment from billionaire businessman Eric Sprott. The private placement was previously announced on July 22. As per the company's announcement, Sprott received a total of 10,416,667 shares in Blackrock at a price of C$0.72 per share.
Blackrock Gold Corp. intends to put this funding to use for exploration on the company's impressive Tonopah West property and for general working capital.
Sprott's interest in Blackrock Gold Corp. (BRC.V) (BKRRF.QB) likely has a lot to do with the company's control over more than half of the Tonopah Silver District, one of the most desirable mining districts in the state of Nevada. As the last great silver district to be discovered in the state in 1900, Tonopah has produced more than 174 million ounces of gold and 1.8 million ounces of silver. Despite this, Blackrock is the first company to bring modern exploration to Tonopah since production in the district shut down nearly a century ago due to low metals prices
Blackrock's Tonopah West land package comprises of 97 patented and 17 unpatented mining claims covering 4.5 sq km (1,100 acres) of the Tonopah Silver District. In early September, Blackrock announced its second discovery on the property, drilling 2,215 G/T silver equivalent over 3.0 meters within 4.6 meters of 1,577 G/T silver equivalent.
Blackrock Gold Corp. is also commencing exploration on a second property in Nevada. The company is starting with a 3,500 meter, 14-drill-hole program at the Silver Cloud property in Northeastern Nevada. Blackrock came into possession of Silver Cloud shortly after the property was foreclosed, eliminating the royalty agreements that kept exploration and production of this asset financially non viable since its stake in 1999. In September, Blackrock announced that the company was considering spinning off a subsidiary company that would be solely focused on exploration at Silver Cloud.
Junior and Intermediate Miners Receive Major Investments
On August 18, junior mining company PureGold Mining Inc. (TSXV:PGM) announced that major mining company AngloGold Ashanti had increased its shareholding in Puregold to 16%. AngloGold Ashanti exercised 5,036,250 share purchase warrants at a strike price of $0.85 per share for a total investment of C$5.0 million.
Orefinders Resources Inc. (TSXV:ORX) announced on August 31 that the company had entered into a private placement agreement with Echelon Wealth Partners Inc. According to the company's announcement, Echelon Wealth Partners will receive C$2,000,000 worth of shares in Orefinders. Echelon has also received an option to purchase up to an additional 15% of units and flow-through units.
StrikePoint Gold Inc. (TSXV:SKP) (OTCQB:STKXF) announced in early September that the company had increased the size of its previously announced non-brokered private placement to C$3,000,000 through the sale of 20,000,000 Units at a price of $0.15 per unit. The offering includes a lead order by Crescat Capital.
On August 18, First Mining Gold Corp. (TSX:FF) announced the increase of a previously announced bought-deal financing led by Cormark Securities Inc. to C$25 million. Cormark, along with other underwriters, will receive 50,000,000 units of First Mining at a price of $0.50 per unit. First Mining intends to put the funding towards exploration, development, and permitting at its Canadian gold projects, as well as potential new acquisitions.
These are huge days in the mining industry. Other markets are struggling amid economic uncertainty, but gold and silver are surging. This means that companies like Blackrock Gold Corp. (BRC.V) (BKRRF.QB)with prime precious metals assets are set up to bring in major funding opportunities.
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