Fury Gold aims to raise $12 million for Quebec, Nunavut projects
Fury Gold Mines Ltd. [FURY-TSX, NYSE American] has announced details of a brokered financing that is expected to raise up to $12 million with proceeds earmarked for exploration at the company’s Eau Claire and Committee Bay projects in Quebec and Nunavut.
The company said a syndicate of agents have agreed to sell any combination of: (i)national charity flow-through units priced at $1.21, and (ii) traditional flow-through shares priced at $1.00 each.
Each traditional flow-through share will be a common share that will qualify as a flow-through share under the Income Tax Act (Canada). Each Charity flow-through unit will consist of one share that will qualify as a flow through share, plus one-half of a share purchase warrant. Each whole warrant will entitle the holder to purchase one share at an exercise price of $1.24 for 24 months following completion of the offering.
Meanwhile, the agents have been granted an over-allotment option to sell up to an additional number of Charity flow-through units and/or traditional flow-through shares in any combination equal to 15% of the total charity flow-through units and traditional flow-through shares issued in the offering at the respective issue priced for up to 48 hours prior to closing.
On Monday, Fury shares were down 4.2% or $0.04 to 90 cents. The shares trade in a 52-week range of $1.00 and 49 cents.
Fury recently announced the results of a preliminary economic assessment (PEA) for its high-grade Eau Claire deposit, which is located in the Eeyou Istchee Territory of the James Bay region of Quebec.
The company said the PEA represents an initial conceptual evaluation of the economic potential of Eau Claire’s mineral resources and is compliant with NI 43-101 standards of disclosure.
The company is looking at three possible scenarios all based on the same mine plan, including a full stand-alone operation with all processing on site, a highbred case starting with two years of toll milling, followed by full standalone crushing, milling, and processing on site. The third scenario involves full toll milling, processing mineralized material off-stie at a third-party facility.
PEA highlights include total recovered gold production of 834,000 ounces at an average grade of 4.46 g/t gold. Average annual production is projected to be approximately 76,000 ounces of gold over an 11-year life of mine at an all-in-sustaining cost of US$1,140 an ounce for the base case; US$1,153 per ounce for the hybrid case, and US$1,170 an ounce for the total milling case.
The PEA forsees low initial capital expenditures ranging from $117 million in the toll milling case to $217 million in base case.
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