Probe Gold set to raise $15M for exploration at Novador and Detour

Probe Gold  (TSX: PRB; OTCQB: PROBF), Beacon Securities and Canaccord Genuity have entered into a bought deal private placement agreement that will raise about $15 million. The proceeds are to be spent on exploration at Probe’s Novador and Detour gold projects.

Probe will issue approximately 6.3 million flow-through shares at a price of  $1.98 each, for gross proceeds of $12.5 million. A further 2.1 million non-flow-through shares priced at $1.21 each will be issued for gross proceeds of $2.5 million. The underwriters have also been granted an option to acquire a further $3-million-worth of shares of either designation.

The bulk of the proceeds will be used to continue exploration and drilling at its Novador gold project and its Detour gold project. Probe owns 100% of both projects.

The multimillion-ounce Novador project is located near Val d’Or, Que. It has measured and indicated resources of 68.0 million tonnes grading 1.62 g/t gold for and inferred resources of 16.7 million tonnes at 2.03 g/t gold. As per the preliminary economic assessment filed in February, there are over 3.5 million oz. and 1.1 million oz. of gold in the respective categories.

The Novador project has an estimated capex of $602.3 million plus sustaining capital of $817.5 million for a mine with a 12.6-year life. The pre-tax net present value discounted 5% is $1.53 million, and the internal rate of return is 34.4%. Capex payback would be achieved in 3.5 years.

The early-stage Detour project is contiguous to Agnico Eagle Mines’ Detour Lake gold mine near Cochrane, Que. An active drilling program is underway.

Visit www.ProbeGold.com.