Snowline Gold has announced an agreement with Cormark Securities and BMO Capital Markets for a bought deal private placement of flow-through shares, aiming to raise around C$25m ($18.54m).

This move is intended to fund exploration activities in the Yukon Territory, with the offering expected to close around the 23 April 2024.

Additionally, the underwriters have been granted an option, exercisable up to 48 hours before the offering’s close, to purchase additional flow-through shares equivalent to 15% of the offering’s issued securities.

This option provides flexibility and potential for additional funding if exercised.

The proceeds from the offering are earmarked for Canadian exploration expenses, specifically those that qualify as “flow-through mining expenditures” under the Income Tax Act (Canada).

Snowline Gold’s projects in the Yukon Territory will benefit from this financial injection, with all qualifying expenditures to be renounced in favour of the subscribers of the flow-through shares by 31 December 2024.

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The company noted that the successful closing of the offering is contingent upon meeting various conditions, including regulatory approvals and the acceptance of the TSX Venture Exchange.

Snowline director and CEO Scott Berdahl said: “The ongoing support of Ms. Cox from our early exploration efforts in 2021 through to today has been a key component of Snowline’s strength in a difficult capital markets landscape.

“We are grateful for the support and for this display of confidence through early exercise of these warrants.

“The funds strengthen Snowline’s current treasury position to C$46.3m, allowing us to focus on exploration and project advancement in what promises to be an exciting and potentially transformative 2024 field season.”

Earlier this month, Snowline declared the early, voluntary exercise of five million warrants, resulting in C$12.5m in total profits for the company.

Ana Maria Cox de Gubbins was in possession of the warrants.

Cox increased her ownership stake in the company to 10.6% with this acquisition.