After reporting bonanza grade intercepts at its flagship property yesterday, Golden Lake Exploration (CSE: GLM) announced that it will be conducting a private placement. The financing will look to raise gross proceeds of $5.4 million through the sale of units of the company.
The financing is to take place at $0.45 per unit, a notable figure considering the equity closed at $0.15 on Friday. Each unit is to contain one common share and one half of a share purchase warrant, valid for a period of two years from the date of issuance at a price of $0.60 per share.
Proceeds from the financing are to be used for the advancement of the firms Jewel Ridge gold property near to Eureka, Nevada, as well as for general working capital purposes.
The company yesterday morning announced the discovery of bonanza grade mineralization on its Jewel Ridge property, with hole JR-20-DD12 intersecting 24.54 metres of 9.16 g/t gold, 65.8 g/t silver, 1.03% lead, and 1.90% zinc, including a sub-interval of 3.23 metres of 57.16 g/t gold, 452.0 g/t silver, 7.23% lead, and 11.99% zinc.
The equity subsequently had its own bonanza, rising from $0.15 to a high of $0.63 on 23.78 million shares of volume, before settling in at $0.55 for a closing price.
A timeline for the closing of the financing was not provided.
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