Grizzly seeks up to $2M as fall drilling nears in Greenwood, Midway
Grizzly says drilling is planned in the area this fall.
Credit: Grizzly Discoveries Inc.
Grizzly Discoveries Inc. is seeking to raise up to $2 million as the company continues fall exploration across its Greenwood-area properties and prepares for drilling planned between October and December.
The Edmonton-based company announced Tuesday that it is offering a combination of ordinary, flow-through and critical-mineral flow-through units through a private placement it expects to close in mid-October.
Grizzly said proceeds from the ordinary units would be used for general working capital and mineral-rights acquisitions, while money raised through flow-through shares would fund exploration of its mineral properties. Proceeds from the critical-mineral flow-through units are intended for exploration targeting critical minerals.
If fully subscribed, the placement would raise $2 million. There is no minimum amount that must be raised, and the company may close the financing in two or more tranches. The offering remains subject to acceptance by the TSX Venture Exchange.
The financing comes as Grizzly resumes exploration work across its Greenwood properties following a pause during July and August because of fire season.
Its fall program includes work around Motherlode, Rock Creek, Midway, Copper Mountain, Overlander-Attwood and Sappho, with additional drilling planned from October through December. Grizzly is also seeking permits for additional drill pads at Motherlode and potentially at Sappho and Midway.
At Midway, the company has said it plans to drill-test anomalous samples and the historical Midway Mine area this fall. Earlier this month, Grizzly reported results from a June sampling program around the historical mine, including chip samples from a trench along the Main Midway Mine trend that returned values of up to 22.8 grams per tonne gold and 1,120 grams per tonne silver.
Other trench samples east and southwest of the historical mine returned gold values of up to 1.7 and 2.7 grams per tonne respectively. The figures are assay results from chip and trench samples collected during the exploration program.
Grizzly is also continuing work at Sappho, where follow-up sampling near a previously identified geophysical anomaly returned 4.73 grams per tonne gold from quartz float near the headwaters of Norwegian Creek. The company has said permitting is underway for an initial drill test of the Sappho target this fall, while further IP work, geological mapping and surface sampling are planned at several targets before drilling.
The new offering has a substantially higher maximum than a placement Grizzly completed in June, which raised $349,044. Ordinary units in that financing sold for 6.5 cents each, compared with five cents in the newly announced offering.
Under the new placement, Grizzly is offering up to 10 million ordinary units at five cents each for up to $500,000, with the remaining $1.5 million available through a combination of ordinary units, flow-through units priced at 5.5 cents and critical-mineral flow-through units priced at six cents.
Each ordinary unit includes one common share and a warrant allowing the holder to purchase another share for 12 cents, subject to the terms of the offering. Depending on the mix of units sold, Grizzly could issue between 35 million and 40 million units if it raises the full $2 million.
Grizzly says its southeastern B.C. holdings cover approximately 72,700 hectares, or 180,000 acres, of precious- and base-metals properties. Its current Greenwood-area work includes targets at Midway, Motherlode, Rock Creek, Copper Mountain, Overlander-Attwood and Sappho.
Grizzly Discoveries Inc. is seeking to raise up to $2 million as the company continues fall exploration across its Greenwood-area properties and prepares for drilling planned between October and December.