Rise Gold has received a Draft Environmental Impact Report for its Idaho-Maryland gold project in California. Credit: Rise Gold
Rise Gold (CSE: RISE) announced Monday it has completed a non-brokered private placement of approximately 6 million units priced at $0.40 each to raise gross proceeds of $2.4 million. Each unit comprises one common share of Rise Gold and one share purchase warrant that is exercisable at $0.60 for two years.
Proceeds from the private placement will be used by Rise Gold for the advancement of its Idaho-Maryland mine project in California.
Located in Nevada county, within the Grass Valley mining district, Idaho-Maryland was the site of one of the most productive gold mines in US history.
Earlier this year, Rise Gold received a Draft Environmental Impact Report (DEIR) for the project, which was a significant step for the company’s permitting process to reopen the historic mine.
Participating in the private placement was a corporate entity owned by Michael Gentile, which subscribed for 1.68 million units.
Gentile is considered one of the leading strategic investors in the junior mining sector, owning significant top 5 stakes in over 15 small-cap mining companies.
He is currently a strategic advisor to Arizona Metals (TSXV: AMC), and a director of Northern Superior Resources (TSXV: SUP), Roscan Gold (TSXV: ROS), Radisson Mining Resources (TSXV: RDS) and Solstice Gold (TSXV: SGC).
Following the latest financing transaction, Gentile beneficially owns roughly 5.1% of Rise Gold’s issued and outstanding shares and on a partially diluted basis.
“I’ve paid close attention to Rise Gold’s exploration and permitting efforts towards the re-opening of the Idaho-Maryland mine,” Gentile said in a press release. “The historical high-grade gold production from the mine and recent exploration results are outstanding. The Idaho-Maryland mine has significant untapped exploration upside with potential for high-grade discoveries.”
Shares of Rise Gold surged 18.0% by 12:15 p.m. in Toronto. The gold mining junior has a market capitalization of C$12.9 million ($10.1m).