Felix Gold is looking to raise $3 million through a share purchase plan (SPP) as the company ramps up its Treasure Creek gold project in Alaska.
The company is set to issue new fully paid ordinary shares at $0.08 per share, equivalent to a 15.4 per cent discount to the volume weighted average price over the five trading days before the date the SPP was announced.
The company will offer eligible shareholders who were registered shareholders as at 7pm (AEST) on Friday 25th August 2023 the opportunity to apply for up to $30,000 of new fully paid ordinary shares in the company under the SPP.
Full details of the SPP will be set out in the SPP offer booklet, expected to be released to the ASX in the coming days.
The $3 million cash injection will be used to progress exploration at the NW Array Target within the Treasure Creek project, delivery of a JORC-compliant Maiden Resource Estimate at the NW Array Southern Zone, further testing of high-grade stibnite (antimony) zones, as well as for ongoing operating expenses.
“Felix Gold is strategically positioned in the Fairbanks gold district to explore for multi-million-ounce gold resources and provide investors with a near-term value pathway to low-capital expenditure production,” Felix Gold managing director and chief executive officer Anthony Reilly said.
“Having calculated an exploration target of 1.1 to 3.6 million ounces of gold at the NW Array Target at the Treasure Creek project, we have now completed the reverse circulation drilling program at the Southern Zone with results surpassing our expectations.”
Felix Gold expects that the area it is currently drilling, the NW Array Southern Zone, has the potential to host from 270,000 ounces to 890,000 ounces of gold.
The company has been exploring the region since 2020, with the simple strategy to discover, delineate, mine, and explore potential partnerships with its neighbours to keep capital expenditure low.