Dave Webb, President and CEO reports, “The Mon Gold Mine is designed to produce 100 tons of feed per day for our recently purchased plant. These funds are expected to cover the costs to mobilize our new plant to site, complete installation and commissioning, and guide us to our first gold deposits. We have had near perfect weather for winter road construction and we expect to be able to provide updates in the coming months as we continue production.”
Commenting on the transaction, Vesta Chief Investment Officer Jared Wolk said: “We are pleased to close this financing and move forward to the execution phase of the restart of the Mon Gold Mine. Vesta’s commitment to Sixty North Gold is rooted in our belief in the high-quality potential of the Yellowknife Gold Belt and the disciplined operational approach of Dr. Webb and his team. By providing the necessary capital to bring this historic producer back into production, we are not only supporting a significant mining asset, but we are also participating in the revitalization of a leading gold producing region. We look forward to working closely with the Board of Directors and management as the project achieves its development milestones through 2026.”
As previously announced, Vesta will make the loan in three scheduled payments totaling $3,600,000, repayable within 36 months of closing. Sixty North Gold has agreed to the following terms:
- paying 12% interest per year on the outstanding principal amount, with no repayments required until December 2026;
- issuing 6,650,000 Vesta share purchase warrants, exercisable at $0.14 per warrant for a period of three years after issuance;
- providing a 2.5% net smelter revenue royalty on operations at the Mon gold mine for a minimum of four years, thereafter subject to repurchase for a repurchase price of up to $5,000,000;
- Sixty North Gold will provide a first-tier security interest over the Mon gold mine; And
- appointment of two qualified nominees from Vesta to the board of directors during the term of the loan.
Dr. Webb further added: “We have modeled our mining cost and revenue structure at much lower gold prices. We expect the current attention gold is receiving will benefit our business. We believe that developing and operating a high-grade gold mine in a location where past production has averaged 30 gpt (see NI 43-101 technical report dated August 3, 2023) in a region with a history of large gold mines operating at grades >15 gpt will benefit to shareholders. Vesta has provided the final cash infusion to help make this happen and we see this relationship as one that can evolve over time as opportunities arise.”
About the company
Sixty North Gold is developing gold mining operations under the 100 percent-owned Mon Gold Project. Mining in the 1990s extracted 15,000 tonnes of ore to a depth of just 15 meters below the surface, with an estimated 15,000 ounces of gold recovered during the 1990s (Company Technical Report NI 43-101, August 3, 2023 on SEDAR+ or https://sixtynorthgold.com/projects/technical-report/. The North Ramp has been reopened and expanded to accommodate the vein to intersect 17 m below the historic stopes. The company plans to develop stopes in the East Limb, West Limb and DD Zone to extract and feed the 100 tonne per day gravity flotation mill.
Additional gold, silver and base metal targets exist on the property and the company intends to explore and develop these targets as warranted.
The Yellowknife gold camp is home to two mines that averaged 30 gpt of gold or better (Discovery Mine with one million ounces of gold produced, and Sixty North Gold’s Mon Mine), and two that averaged 15 gpt or better for a total production of more than 14 million ounces of gold (Con Mine and Giant Mine); (ref. Technical Business Report NI 43-101, August 3, 2023).
The technical content of this press release has been reviewed and approved by Dr. DR Webb, P.Geol, President and CEO of Sixty North Gold Mining Ltd. Some of this technical content constitutes “historical estimates” under NI 43-101. These estimates are historical in nature and do not constitute current mineral resources or mineral reserves, and a qualified person has not done sufficient work to classify them as such. The Company does not treat these historical estimates as current mineral resources or mineral reserves.
For more information, please refer to the company’s public filings available on SEDAR+ (www.sedarplus.ca), under the company profile.
ON BEHALF OF THE BOARD OF DIRECTORS
“Dave Webb”
Dave Webb, president and CEO
Website: www.sixtynorthgold.com
Statements regarding the Company’s future expectations and all other statements in this press release, other than statements of historical fact, are “forward-looking statements.” Such forward-looking statements are based on numerous assumptions and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Further details on the risks applicable to the Company can be found in the Company’s public filings available on SEDAR+ (www.sedarplus.ca), under the company profile.
THE CANADIAN SECURITIES EXCHANGE HAS NOT APPROVED NOR DISAPPROVED THE CONTENTS OF THIS PRESS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/279044
#Sixty #North #Gold #secures #project #financing #restart #operations #highgrade #Mon #gold