Wesdome Gold Mines is buying a 10.6% interest in Angus Gold, whose flagship project is right next to its Eagle River mine, through participation in a flow-through offering announced by Angus Friday.
The units are being priced at 80¢, each comprising one common share and half a share purchase warrant. The exercise price of warrants is also set at 80¢, valid for a period of 24 months.
Wesdome could increase its ownership in Angus to 15%, if it exercises all of its warrants.
The Toronto-headquartered gold producer now joins two other notable Angus shareholders, Delbrook Capital Advisors and New Gold, which hold 16.4% and 9.9% equity ownerships respectively.
In total, Angus expects to raise roughly $4.6 million for its exploration activities in Ontario.
Angus’s 100%-owned Golden Sky project in Wawa, Ont., is located within the same greenstone belt that hosts the high-grade Eagle River and the Mishi open-pit gold mines of Wesdome.
The 261-sq.-km. project is host to the near-surface Dorset gold zone, which contains a historic estimated resource of 40,000 oz. of gold (780,000 tonnes grading 1.4 grams gold per tonne) in the indicated category and 180,000 oz. of gold (4.8 million tonnes grading 1.2 grams gold) in the inferred category.
“We are excited to welcome Wesdome as a strategic investor in Angus Gold. Our ability to draw on their knowledge and experience in the area will be invaluable as we continue to advance our Golden Sky project,” Breanne Beh, CEO of Angus, said in a news release.
“This investment not only validates the exploration potential at Golden Sky, but also provides the financial support to execute robust exploration programs throughout 2024 and into 2025,” she added.
Shares of Angus Gold surged by 12.7% or 7¢ by early afternoon in Toronto to 62¢ on the announcement. The company’s market capitalization stood at $30.4 million.
