Go Metals Corp. [GOCO-CSE] said Friday it has closed an upsized private placement of flow through shares that raised almost $2.2 million, up from the earlier target of $1.5 million.
Go is focused on battery metals. Its flagship HSP nickel-copper sulphide project is located 130 kilometres north of Havre-Saint Pierre, Que. The company acquired the original HSP property through staking in 2019, recognizing untapped potential and is now using an augmented geological model to secure a regional scale land position.
In a press release on September 13, 2022, Go said nickel and copper sulfides have bee visually identified at all five zones from the first ever drilling at the 100%-owned HSP project. At that time, it said 1,250 metres of drilling had been completed, and initial samples sent for analysis to an independent laboratory to be assayed for nickel, copper, palladium and platinum content.
“The results from this maiden drill program are very encouraging and really open up the property as the targets are very widely spaced,’’ said Steve Balch, a geological consultant to Go Metals. “The disseminated sections will be particularly important as that is where the size of the project will ultimately be determined.’’
In a press release on September 26, 2022, Go said it has increased its land holdings in south-eastern Quebec following the maiden drilling program at HSP. The acquisitions include the 71 square kilometre Ninety-Eight Property (98) and 171 square kilometre Clyde Property, bringing the company’s total land position to 396 square kilometres.
Both of the new projects follow regional scale contacts along anorthosite intrusive complexes. It said the unique regional geology shows potential for nickel-copper sulphides.
The road-accessible 98 Property is located along the southern extension of the same anorthosite complex underlying the HSP property. The Clyde Property is located 30 kilometres west of HSP in an underexplored portion of the Fournier anorthosite complex.
Go Metals said the private placement consisted of 1.74 million flow-through units priced at $1.254 per unit, raising proceeds of $2.18 million. Each flow-through unit consists of one common share (issued as a flow-through share) and one half of one common share purchase warrant.
Each warrant entitles the holder to acquire one common share of the company at $1.00 for up to 24 months from the closing date, which is today (Friday), when Go shares were unchanged at 68 cents and trade in a 52-week range of 1.23 and $0.075. Proceeds will be used to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures” under the Income Tax Act (Canada).