Allegiant Gold Ltd. (AUAU:TSX.V; AUXXF:OTCQX) recently announced the closing of the second and final tranche of the non-brokered private placement first reported on July 5, 2018. The tranche consisted of gross proceeds of CA$2.17 million through the issuance of 6,223,819 common shares at CA$0.35 per share. Goldcorp Inc. was the principal investor in the tranche, who acquired 5,923,819 common shares ($2.07 million), resulting in an ownership interest of 9.74% in Allegiant.
"Goldcorp's investment is an endorsement of our team, our projects, and of our objective of making a significant new gold discovery. With funding in place, we're about to kick-off an aggressive exploration program that will see six gold projects drilled over the next 10-12 months," said Robert Giustra, chairman and CEO of Allegiant.
The non-brokered private placement consisted of a total of 14,130,001 common shares of Allegiant at a price of CA$0.35 per common share for gross proceeds of nearly CA$4,945,500.35. All shares issued in connection with the offering will be subject to a four-month hold period.
Proceeds will be used to carry-out high-impact "discovery" exploration drill programs on six of Allegiant's high-priority exploration projects, located principally in the mining-friendly jurisdiction of Nevada, the company noted.
On August 20, a drill rig is scheduled to arrive at Allegiant's Red Hills gold project in Nevada for an eight-hole reverse circulation drill program, totaling up to 2,200 meters. After Red Hills and over the next 10 to 12 months, the company plans to also drill the following five projects: Hughes Canyon, Monitor Hills, North Brown, Silverdome and Adularia Hill.
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