Today’s story is about three mining companies who are really making the most of recent financings.
Klondex Mines has completed a CA$129.5 million subscription receipt offering. This is a huge step towards completing the acquistion of the Hollister and Esmerelda mines in Nevada. Gross proceeds from the offering have been placed in escrow and will be released once all conditions of the Hollister and Esmerelda acquisitions have been satisfied. If that hasn’t happened by November 16, 2016, all the funds will be returned to the receipt holders.
In addition to paying for the acquisition, Klondex will use the funds raised for exploration and development at Hollister and exploration at Esmerelda. The addition of these two mines will allow the company to build on the results from their active Fire Creek and Midas mines, also in Nevada.
Rye Patch Gold Corp has officially taken ownership of the Florida Canyon gold mine in Pershing County, Nevada. The deal was closed after the funds were released from the CA$49.1 million private placement of subscription receipts it conducted in June. The acquisition cost the company approximately US$23 million.
The acquisition of Florida Canyon has put Rye Patch into a potential gold producer status. The transaction was dilutive by nature but it is still a great bargain and a strong buy.
Gold Standard Ventures Corp announced that Goldcorp made a CA$16.1 million strategic investment and OceanaGold Corp made a CA$13.4 million strategic investment. Not long after, Gold Standard announced a US$13.4 million 2016 exploration program for its Railroad-Pinion project in Nevada.
After some really exciting results, Gold Standard planned to follow up on them by devoting a greater portion of its 2016 drilling program at Railroad-Pinion to Dark Star. There is still more drilling to be done to determine Dark Star’s overall size and potential, but the company’s geologists are clearly heading down the right track, and their results back that up.
With those results, it looks likely that Gold Standard will get bought out by one of the majors already operating in Nevada.
It sure is nice to see things starting to turn around! We have high hopes for all three of these companies. As things start taking off, our earthmoving equipment will be helping companies like these rake that money in!
*All information for this story was taken from mining.com.