$2 Million Placement Fuels Exploration at High-Grade Blackhawk Project
Sierra Nevada Gold (ASX: $SNX) has successfully raised A$2 million through a share placement, issuing 40 million new fully paid ordinary CDIs at A$0.05 per share. The funds will be used to propel the company’s exploration activities at its Blackhawk Silver-Gold Project in Nevada, a site that has recently returned high-grade silver assays of up to 5,180g/t Ag from the Two Shovels Mine.
Strong Support from Investors
The placement attracted substantial backing from both existing shareholders and new investors, demonstrating confidence in Sierra Nevada Gold's prospects. In addition to the new CDIs, participants in the placement will receive one unlisted option for every three CDIs allocated, with the options exercisable at A$0.12, expiring in August 2025.
Accelerated Exploration at Blackhawk
The newly raised capital will be channeled into an upcoming 1,500m drill program at the Blackhawk Silver-Gold Project, following up on previous high-grade results from the Endowment Mine, where samples returned silver grades as high as 1,270g/t. The Blackhawk project spans 22.5km of outcropping mineralisation and holds immense potential for a large-scale polymetallic system, rich in both silver and gold.
Recent Results and Future Plans
Recent sampling at the Two Shovels Mine, located 4km from the Endowment Mine, returned significant results, including silver grades up to 5,180g/t Ag and copper grades up to 2.82%. With drilling set to begin soon, Sierra Nevada Gold aims to unlock further high-value mineralisation in what could be a major discovery for the company.
Executive Commentary
Peter Moore, Executive Chairman of Sierra Nevada Gold, expressed his enthusiasm for the upcoming drilling campaign: “We are very pleased with the strong support from both existing and new shareholders in this capital raise. With these funds, we are well-positioned to accelerate our exploration at Blackhawk, targeting the high-grade silver and gold mineralisation identified at surface. The recent assay results demonstrate the project’s exceptional potential, and we are excited to commence drilling shortly.”
Key Placement Details
The placement was conducted in two tranches, with 30.3 million CDIs issued in Tranche 1 and a further 9.7 million CDIs to be issued in Tranche 2, subject to shareholder approval at an Extraordinary General Meeting in December 2024. The issue price represents a 10.7% discount to the last traded price of A$0.056 and a 16.3% discount to the 15-day VWAP.
Canaccord Genuity and Foster Stockbroking acted as joint lead managers for the placement, which also included a management fee and selling fee for their services, along with an allocation of options exercisable at a 50% premium to the offer price.
Upcoming Drilling and Exploration Outlook
Sierra Nevada Gold is poised to begin its 1,500m drill program at the Blackhawk project, with the possibility of expanding the campaign based on initial results. The company will target key high-grade silver and gold zones identified through previous surface sampling and drilling, with a focus on building a comprehensive understanding of the site’s potential.
