Vancouver-based gold miner GT Gold (TSXV: GTT) has secured C$8.3 million (US $6.2) million in financing from Newmont Goldcorp (NYSE: NEM, TSX: NGT) by way of a private placement of 6.88 million common shares at C$1.20 per share.
On completion of the financing, Newmont will own 14.9% of GT Gold’s outstanding shares, an increase from the 9.9% acquired by Newmont on May 29, 2019.
Shares of GT Gold rose by 10% at Thursday’s open as result of the latest investment boost. The company’s market capitalization is approximately C$91 million.
The Newmont financing further supports the thesis that the Saddle North gold-copper discovery has the pedigree to become a ‘Tier 1 asset’, said GT Gold president and CEO Paul Harbidge. The Saddle North discovery was made on the company’s flagship Tatogga property, located near Iskut, British Colombia, in September 2018.
“The drill results from the 2019 field season continue to delineate a project with scale, grade and bulk mining options while exploration results from within the 46,827-hectare Tatogga project are providing a pipeline of future targets for drill testing, in what we believe to be a new porphyry district in British Colombia,” Harbidge added.
The advancement of Saddle North to a geological model is expected in the first quarter of 2020, followed by the release of an inaugural resource in the second quarter and a preliminary economic assessment (PEA) by late 2020.
Following completion of the financing, GT Gold expects to have sufficient cash on hand to fund all expenditures up to and including the PEA, as well as a sizeable buffer for work following the PEA into 2021.
