Gold price tumbles on reports of de-escalating Middle East tensions
Gold plunged 3% after Axios reported that Israel and Lebanon have accepted the terms of a ceasefire agreement.
Canadian gold explorer McFarlane Lake Mining (NEO: MLM) announced Tuesday that it intends raise C$4.5 million through the sale of a combination of units and flow-through shares of the company, with McEwen chairman Rob McEwen acting as the lead investor.
In total, McFarlane Lake intends to issue 50 million units priced at C$0.05 each and approximately 33.3 million flow-through shares priced at C$0.06 apiece. McEwen, who has been associated with the gold industry throughout his career, has agreed to subscribe for C$1 million worth of the securities.
Shares of McFarlane Lake soared by 30.8% to C$0.085 at market close, giving the junior gold miner a market capitalization of C$9.6 million.
Net proceeds will be used by the company to further explore the High Lake gold property, which straddles the Ontario-Manitoba border and could potentially be developed together with its West Hawk Lake project located on the Manitoba side.
Exploration on the High Lake property has led to the identification of a mineralized zone with potential for open-pit mining. To date, the deposit contains an estimated indicated resource of 152,000 tonnes grading 9.38 g/t gold and inferred resource of 287,000 tonnes at 10.43 g/t gold.
“We are delighted that Rob McEwen is participating in the offering and look forward to working with him as we continue to build out our gold resources at High Lake and develop our Canadian gold properties,” Mark Trevisiol, CEO of McFarlane Lake, said in a news release.
McEwen’s company currently holds three producing mines in Nevada, Ontario, and Argentina, as well as a 68% interest in the large Los Azules copper project in Argentina.
“I was attracted to McFarlane Lake because of its terrific high-grade intercepts and the fact that it is in Canada and located close to where Goldcorp Inc. enjoyed such phenomenal exploration success and profitability,” McEwen said in a statement.
