Snowline Gold announces strategic investment by B2Gold
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(Kitco News) - Snowline Gold (CSE: SGD) (OTCQB: SNWGF) announced on Tuesday that gold producer B2Gold has agreed to complete a strategic investment into the company.
According to a press release, B2Gold will be the purchaser of common shares of Snowline Gold on the back end of an initial non-brokered flow-through private placement arranged by the company.
"Pursuant to the initial non-brokered private placement, up to 3,941,048 flow-through (FT) common shares of the company will be issued at a price of C$4.862 per FT share for aggregate gross proceeds to the company of up to C$19,161,375," the company said.
Snowline added that the gross proceeds from the issue and sale of the FT shares will be used to support advancement of exploration on the company’s Yukon Territory mineral properties.
"The common shares to be purchased by B2Gold on the back end of the private placement, combined with 3,000,000 common shares of the company recently acquired by B2Gold on the open market, will represent a total position of approximately 5.0% of the issued and outstanding common shares of the company upon completion of the offering," the company said.
"We are excited to welcome B2Gold as a growth-focused, long-term, value-driven investor," said Scott Berdahl, CEO & Director of Snowline. "B2Gold is a major global gold producer with a strong track record of growth built on a demonstrated commitment to communities, sustainable mining and employee safety. Their interest in Snowline is a sound endorsement of the company we are building along with the quality and geological potential of our assets."
Snowline Gold is a Yukon Territory focused gold exploration company with a seventeen-project portfolio covering >280,000 ha. The company indicated it is exploring its flagship >137,000 ha Rogue and Einarson gold projects in the "highly prospective yet underexplored Selwyn Basin."
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