The Nevada-focused junior Lincoln Gold Mining Inc. (TSX-V: LMG) received a C$750,000 private placement this week and will use it to accelerate its pending acquisition of the state’s Bell Mountain project.
Lincoln started negotiations with the site’s owner Eros Resources Corp. (TSX-V: ERC) last August followed by an acquisition agreement announced in November. The companies then received approval for the deal from the TSX Venture Exchange later that month.
It is a fully permitted open-pit heap leach operation with a thorough cost-effective mining plan, Lincoln claims.
Once the private placement closes, Lincoln will be completing a preliminary economic assessment and starting to craft a detailed design for the site’s plant. The project is situated in the Fairview mining district, southeast of Reno in Churchill County.
“We are excited to announce this private placement offering as it marks a crucial step forward in our journey towards becoming a mid-tier gold producer,” Lincoln President Paul Saxton said.
Bell Mountain holds an estimated 56,800 ounces of measured and indicated gold equivalent ounces. The only previous production at the site occurred in 1927 when a 35-ton hand-sorted shipment of ore grading at 16 g/t gold was dug up.
“As a part of the proposed transaction, Lincoln assumes responsibility for the entirety of the capital required to initiate production at the project,” Eros CFO Andrew Davidson said in November, “which materially reduces the financial and dilutive strain on Eros.”
Eros Resources Announces Agreement with Lincoln Gold Mining to Sell Bell Mountain Projecthttps://t.co/78Ef0RZhKD pic.twitter.com/Y45mCbJULO
— Eros Resources Corp. (@ERC_Gold) November 10, 2023
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Lincoln aims to join ranks of Nevada mid-tiers
Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) is a company active in Nevada that recently solidified its status as a mid-tier producer. This was made possible through its recent acquisition of Marathon Gold and Newfoundland’s Valentine gold project.
Others in the state include Coeur Mining Inc. (NYSE: CDE), operator of the Rochester mine in Pershing County; SSR Mining Inc. (TSX: SSRM), which runs the vast Marigold mine that has been producing gold since 1989; and Hecla Mining Company (NYSE: HL), which has a series of exploration stage assets in Nevada.
Reno’s i-80 Gold Corp. (TSX: IAU) (NYSE: IAUX) is another company in the state currently working toward achieving mid-tier producer status.
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