Revival Gold (TSXV: RVG) has welcomed Dundee Corp. (TSX: DC.A) as a new shareholder following a C$3.2 million ($2.2 million) equity investment to fund its project development activities based in the US.Through a non-brokered agreement, Dundee has agreed to buy 10 million units of Revival Gold at a price of C$0.32 per unit. Each unit contains one common share and one-half of a common share purchase warrant with an exercise price of C$0.45 per share.Shares of Revival Gold were trading at C$0.35 at market open on Wednesday, for a near 2% intraday gain. Its market capitalization is around $70 million ($49 million).Revival also has the option to increase the size of the placement by up to 15% for additional proceeds of up to C$480,000.In addition to the placement, Revival and Dundee have agreed to undertake metallurgical studies using proprietary technologies developed by Dundee Sustainable Technologies.Commenting on Dundee’s investment, Revival Gold CEO Hugh Agro said, “We welcome Dundee as a new strategic investor in Revival Gold and we look forward to Dundee’s strategic and business input going forward.Agro pointed out that Dundee and its team of mining, finance and ESG professionals have played key roles in the creation of some of the world’s most successful precious metals businesses, including Repadre Capital, Dundee Precious Metals, and Sabina Gold & Silver.Pure gold developerRevival Gold became one of the largest, pure-gold mine developers in the US following its purchase of the Mercur project in Utah, which added 1.6 million oz. of gold resource, mostly on private land, to the near 5 million oz. already held at its Beartrack-Arnett project in Idaho. Located 57 km southwest of Salt Lake City, the Mercur property covers 62.6 sq. km of the Oquirrh Mountains region, including an area optioned from Barrick Gold by its previous owner Ensign Minerals.Revival’s team considers the large regional package at Mercur to “hold attractive potential for additional discoveries” based on the project’s track record of past production and the results of recent fieldwork undertaken by Ensign.Since announcing the deal last April, Revival has progressed the Mercur project further towards pre-development, including the completion of a metallurgical test program and drafting the geological models. These will be incorporated into an upcoming preliminary economic assessment, which the Toronto-based gold explorer expects to complete within two months. In the report, it is targeting approximately 80,000 to 100,000 oz. per year of gold production over 9-10 years.This will add to the eight years of 65,300 oz. in forecast annual gold production from its Beartrack-Arnett project, which has already reached the prefeasibility stage. According to the technical study, the project has an estimated net present value of $105 million (at a 5% discount rate) and internal rate of return of 24.3%.
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