Felix raises $2.8 million to bolster exploration at Treasure Creek gold project

Alaska-focused explorer Felix Gold has raised $2.8 million in a strongly supported placement to fund exploration drilling at its NW Array gold discovery within its Treasure Creek project area in Alaska.

Highlighting just how much support it received from both existing shareholders and new investors, including a cornerstone investment from largest shareholder Mine Discovery Fund (MDF) and company directors (subject to shareholder approval), the company raised more than its initial target of $2.5m.

To top it off, the placement price of 10c per share represents a 5.3% premium over its last closing price of 9.5c, a distinction that sets it apart from other capital raising initiatives, which are typically made at a discount.

Funds raised will go towards exploration activities including a 40 RC hole, 3,500m infill drilling campaign designed to delineate a maiden resource with near-term development potential.

The funds will also cover general working capital and the cost of the placement.

Highly prospective Tintina gold belt

Treasure Creek is in Alaska’s highly prospective Tintina gold belt, with neighbours including TSX-listed Freegold Ventures who recently upgraded the resource Golden Summit project from a still substantial 3Moz to a world-class Indicated and Inferred Resource of more than 20Moz of gold.

Notably, Treasure Creek and NE Fairbanks tenure effectively bookends Golden Summit, which when combined with the presence of Kinross Gold’s Fort Knox gold mine just 15km away and FXG’s early stage gold hits provides support for the company’s belief that it on track to uncovering a substantial gold resource.

“We are delighted with the level of support from investors for the placement, reflecting their endorsement of our exploration progress including the emerging discovery at our flagship NW Array prospect, which has the potential to host up to 3.6Moz,” Felix Gold (ASX:FXG) MD and CEO, Anthony Reilly said.

“This capital raise will provide the funds necessary to delineate a maiden resource at the NW Array target, with the goal of creating shareholder value on the back of our strategic location adjacent to the Fort Knox Mine.”

This article was developed in collaboration with Felix Gold Limited, 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.