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Spearmint Resources prepares for work in Nevada
  • Discovery Harbour Resources (TSXV:DHR) is set to raise C$3 million in a non-brokered private placement to fund exploration activities in Nevada, USA
  • Under the terms of the placement, the company intends to issue up to 54.5 million units at a price of 5.5 cents each
  • Each unit will be comprised of one common share in the capital of the company and one common share purchase warrant
  • These warrants will be exercisable at a price of 10 cents over a period of three years from the date of issuance
  • Discovery Harbour Resources (DHR) is down 13.33 per cent and is trading at 6.5 cents per share

Discovery Harbour Resources (TSXV:DHR) is set to raise C$3 million in a non-brokered private placement to fund exploration activities in Nevada, USA.

Under the terms of the placement, the Vancouver-based company intends to issue up to 54.5 million units at a price of 5.5 cents each. These units will be comprised of one common share in the capital of the company and one common share purchase warrant.

Each warrant will be exercisable at a price of 10 cents for a period of three years from the date of issuance.

A finder's fee may also be paid in connection with the placement, which is expected to close by July 17, 2020, pursuant to the policies of the TSX Venture Exchange.

Discovery Harbour intends to use the proceeds to fund exploration activities at its Caldera epithermal gold project in Nevada, which is expected to include a drill program on high-priority targets. A portion of the proceeds may also be used to settle outstanding debts and for general working capital purposes.

Located in south-west Nevada, the Caldera project has seen an extensive amount of previous exploration work. Historic operators have completed various programs of soil and rock-chip sampling, as well as 142 drill holes with an average vertical depth of less than 100 metres.

However, Discovery Harbour notes that these previously companies have all been focused on identifying a near-surface, open pit-type deposit. But while some positive results were returned, the low sulphidation epithermal gold model suggests that significant mineralisation is not expected until a depth of around 300 metres.

Some of these earlier results include rock-chip samples of 193 grams per tonne of gold and soil samples of 1.3 grams per tonne of gold. Drilling also returned some notable results, including 25 feet of 8.33 grams per tonne of gold and 10 feet of 37.92 grams per tonne of gold.

Discovery Harbour Resources (DHR) is currently down 13.33 per cent and is trading at 6.5 cents per share at 3:26pm EDT.


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