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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Kinross Gold invests $1.5M into Vancouver-junior Relevant Gold

Shares had already jumped 6.7 per cent higher by mid day on Tuesday after the announcement

Kinross Gold invests $1.5M into Vancouver-junior Relevant Gold
From left to right - CEO Rob Bergmann, Director Sam Siebenaler and Chief Geologist Dr Dean Peterson. Image via Relevant Gold.

Kinross Gold (NYSE: KGC) (TSX: K) bought 5.1 million shares of Relevant Gold (TSXV: RGC) (OTCQB: RGCCF) at CAD$0.30 each, for a total of CAD$1.53 million.

The company announced on Thursday that this sale represents approximately 9.9 per cent of Relevant’s equity capital, and Kinross will get the right to boost its ownership by 19.9 per cent as part of a standard rights agreement. The deal also comes with enough warrants to buy half the number of common shares at CAD$0.35 per share.

Shares had already jumped 6.7 per cent higher by mid day on Thursday after the announcement, which bumped the Vancouver-based gold junior’s market value to CAD$20.4 million.

“This investment marks a key milestone for Relevant, expanding our technical depth, strengthening our corporate structure and bolstering our treasury,” Rob Bergmann, Relevant Gold’s CEO, said. “We look forward to immediately leveraging this new relationship in our upcoming drilling program.”

Kinross’s investment is separate from the private placement Relevant completed last month. In that placement, Relevant sold approximately 5.78 million units at CAD$0.25 per unit, raising CAD$1.44 million. Each unit comprised one share and one-half warrant. The proceeds from both placements will fund exploration on the company’s mineral properties.

Relevant currently holds five district-scale projects spread across two gold camps, covering over 40,000 acres (161.9 sq. km.) in west-central Wyoming. Its flagship asset is the 38.8-sq.-km. Golden Buffalo project, which historically produced 500 oz. of gold from a 20-metre trench. Drilling in 2022 yielded 83.8 grams per tonne of gold over 1 metre. It also sports shear-hosted gold mineralization in over half of the holes. Rock chip assays also revealed up to 160 g/t gold.

Read more: U.S. Gold Corp acquires environmental quality permit in Wyoming

Read more: U.S. Gold to present at New York’s Current Trends in Mining Finance Conference

Golden Buffalo may be similar to famous Abitibi region in Canada

Relevant’s team announced that the Golden Buffalo shear zone, now extended to 800 meters long, shares similar minerals with the gold-rich Abitibi region in Canada.

Recent drilling in 2022 displayed the shear zone’s prospectivity, with assays revealing 83.8 grams per tonne gold (g/t) over 1 meter and shear-hosted gold mineralization encountered in over half of the drilled holes. Rock chip assays have also shown gold concentrations up to 160 g/t.

Beyond the Gold Buffalo sheer zone, Wyoming sports a number of different prospective territories.

GFG Resources Inc (TSXV: GFG) (OTCQB: GFGSF), for example, actively exploring the Rattlesnake Hills Gold Project in central Wyoming. This project encompasses a significant land package with promising exploration potential due to its geological similarities to the Cripple Creek deposit in Colorado.

Furthermore, U.S. Gold Corp (NASDAQ: USAU) and its CK Gold project near the state capital of Cheyenne, is another advanced exploration and development project.

Historical drilling and recent exploration activities have discovered high-grade gold and copper.

At $1600 per ounce of gold and $2.80 per pound of copper, the project is projected to generate a pre-tax cash flow of $510.54 million and has a Net Present Value (NPV) of $321.6 million with a 52 per cent Internal Rate of Return (IRR)​.

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U.S. Gold Corp. is a sponsor of Mugglehead news coverage

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