eResearch | On August 21, Maritime Resources Corp. (TSXV: MAE) announced the closing of an $8.7 million bought deal private placement of 43.4 million common shares at a price of $0.15 per share and 11.0 million flow-through shares at $0.20 per flow-through share.
The new funds will be used for the continued optimization and de-risking of the Hammerdown Gold project, and allows for the expansion of exploration programs at both the Hammerdown and Whisker Valley gold projects.
Five directors and officers of the Company, subscribed for a total of 0.9 million shares for an aggregate subscription price of approximately $140,200 and Dundee Resources Limited, an affiliate of Dundee Goodman Merchant Partners, subscribed for 9.5 million shares for an aggregate subscription price of $1.42 million. As a result of the closing of the offering, Dundee Resources Limited now owns over 55.7 million common shares, representing approximately an 18.5% interest in the Company.
Sprott Inc. (TSX:SII) and certain of its affiliates, owns or exercises control over 25.8 million shares and 7.9 million warrants, representing approximately 11.2% of the issued and outstanding common shares.
Hammerdown Gold Project
Maritime Resources holds a 100% interest in the Green Bay Property, including the former Hammerdown gold mine and Orion project, 15 km northwest of Springdale, Newfoundland and Labrador.
The Hammerdown gold deposit was mined by Richmont Mines from 2000-2004 with its ore being processed at the Nugget Pond mill, now owned and operated by Rambler Metals and Mining PLC (AIM:RMM).
The NI 43-101 resource contains 574,200 oz Au at 6.0 g/t in the Hammerdown & Orion pit constrained model and 413,000 oz Au at 4.2 g/t in the Hammerdown & Orion Underground model.
PEA Overview
The Hammerdown Gold project has a Preliminary Economic Assessment (“PEA”) with a Net Present Value (“NPV”) at 5% of $111.3 million, a 50.5% Internal Rate of Return (“IRR”) at a base case gold price of US$1,375/oz, and pre-production capital expenditures of $57.2 million.
The PEA leverages Hammerdown’s existing infrastructure and the ore would be processed at the Nugget Pond mill with a nine-year mine life and an average annual gold production of 57,900 oz.
Recent Drill Results
In 2020, Maritime has completed an 80-hole, 8640 metre drill program at their Hammerdown project and has released assays from 28 of the 80 drill holes. In July, Maritime released drill results with highlight holes including:
- 58 grams per tonne gold (“g/t Au”) over 2.16 metres
- 58 g/t Au and 12.71 g/t Silver over 2.16 metres
Maritime Resources closed the week at $0.175, up $0.01.
//
MAP 1: Gold Deposits and Showings (gold dots) in Newfoundland
Note: All numbers in CAD unless otherwise stated.
