Felix Gold has raised $2.5m in a well-supported placement from existing shareholders and new sophisticated and professional investors
The company plans to use the funds to finalise an upcoming resource at NW Array
Capital will also be allocated to resource expansion drilling at the high-grade Grant mine
Special report: Felix Gold is set to unlock value in its dominant position in the Fairbanks gold mining district after exceeding its target and raising $2.556m via placement.
Felix Gold (ASX:FXG) is one of the largest claim holders in Alaska’s Fairbanks gold mining district, where historical gold production exceeds some 16Moz.
Its leases are sandwiched between Kinross’ 11.8Moz Fort Knox mine (19km away) and Freegold Ventures’ 19.7Moz Golden Summit Project (18km away).
Right now, FXG is focused on its NW Array prospect at Treasure Creek where it’s working on a maiden resource based off an identified open-at-surface 2km x 600m oxide gold system.
Significant thick, shallow and high-grade drilling results from 2023 included 70.1m at 1.6 g/t from 6.1m, including 7.6m at 6.4 g/t from 21.3m.
Adding to that, a metallurgical bottle roll leach test recently yielded some huge recoveries from oxidised samples of previous drilling at NW Array, showing up to 90% within 50m of the surface.
Maiden resource and expansion drilling looming
FXG has now raised $2.556m through the issue of 47,334,259 fully paid ordinary shares at $0.054 per share, representing a discount of 19.4% over the last closing price of $0.067 prior to the trading halt.
Strong support was received from both existing shareholders and new investors, including MDF Global Limited (MDF) and the directors of Felix Gold (subject to shareholder approval at an upcoming EGM).
Funds raised will be used to complete the imminent maiden resource at NW Array, as well as progress ongoing exploration and resource expansion drilling at both the Grant Mine and NW Array Projects.
The company’s primary objective is to substantially grow its resource base from its current 364,000oz inferred resources.
Enviable position amid growing M&A activity
“This raise helps Felix Gold continue to unlock value of our dominant position in the Fairbanks gold mining district, home to Kinross Gold Corporation’s Fort Knox mine, which is actively seeking more ore,” FXG managing director Joseph Webb says.
“We have a maiden resource coming up and are transitioning multiple assets from exploration to resource expansion and economic studies amidst growing M&A activity, and all buoyed by the current gold market momentum.
“Felix Gold has a strong platform and a clear pathway for commercialisation of our assets.”
This article was developed in collaboration with Felix Gold, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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