Gold Standard Ventures Corp. (TSXV:GSV,NYSEMKT:GSV) announced that it’s entered into a subscription agreement that will see a subsidiary of OceanaGold Corp. (TSX:OGC,ASX:OGC) purchase 24,997,661 common shares of the company priced at C$0.65 each.
Gold Standard Ventures Corp. (TSXV:GSV,NYSEMKT:GSV) announced that it’s entered into a subscription agreement that will see a subsidiary of OceanaGold Corp. (TSX:OGC,ASX:OGC) purchase 24,997,661 common shares of the company priced at C$0.65 each. That amounts to gross proceeds of $16,248,480.
As quoted in the press release:
The Financing is expected to close on or around May 20, 2015. At closing, it is anticipated that OceanaGold will own approximately 14.9% of the Company’s issued and outstanding shares on an undiluted basis. The net proceeds of the Financing will be used to further advance the Company’s Railroad-Pinion project and for general corporate and working capital purposes.
Jonathan Awde, president, CEO and director of Gold Standard, commented:
We view this strategic investment by OceanaGold as a significant milestone and validation of the work we have completed at Railroad-Pinion. OceanaGold is an experienced mine developer and we look forward to building a strong relationship as we move Railroad-Pinion forward. Following closing of the financing, Gold Standard will have just under $20 million in working capital that will allow us to continue rapidly advancing and de-risking the project.
Mick Wilkes, managing director and CEO of OceanaGold, said:
Our investment highlights the quality and potential of the Railroad-Pinion project. We also view this as an opportunity to gain exposure to another jurisdiction and one of the most prolific gold belts in the world. We look forward to working with the Gold Standard team and participating in the advancement of the Railroad-Pinion project.
Gold Standard is an advanced stage gold exploration company focused on district scale discoveries in Nevada. The Company’s flagship project, the Railroad-Pinion Gold Project, is located within the prolific Carlin Trend. The 2014 Pinion gold deposit acquisition offers Gold Standard a potential near-term development option and further consolidates the Company’s premier land package on the Carlin Trend. The Pinion deposit now has an NI43-101 compliant resource estimate consisting of an Indicated Mineral Resource of 20.84 million tonnes grading 0.63 grams per tonne (g/t) gold (Au), totaling 423,000 ounces of gold and an Inferred Resource of 55.93 million tonnes grading 0.57 g/t Au, totaling 1,022,000 ounces of gold, using a cut-off grade of 0.14 g/t Au (announced September 10, 2014). In addition to the Pinion deposit NI43-101 compliant resource estimate, the Dark Star deposit, 2.1 km to the east of Pinion, now has an NI43-101 compliant resource estimate consisting of an Inferred Resource of 23.11 million tonnes grading 0.51 g/t Au, totaling 375,000 ounces of gold, using a cut-off grade of 0.14 g/t Au (announced March 3, 2015).