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• Allegiant Gold closed a fully subscribed non-brokered private placement, raising $3.5M to support exploration at its flagship Eastside Project.
• With the new influx of cash, the Company excitingly has increased its planned drill program at Eastside from 2,000-3,000m to over 7,000m.
• AUAU also completed a 2-for-1 share consolidation, reducing its outstanding share count from ~106.1M to ~53.0M, as of June 2nd.
Allegiant Gold Ltd. (AUAU:TSXV, AUXXF:OTC) recently closed a private placement that was fully subscribed, raising proceeds of $3.5M through the issuance of 19.4M units at $0.18 per unit (presented on a pre-consolidation basis). Each unit included one common share and one-half warrant, with each whole warrant exercisable at $0.28/share for a 12-month period (a short expiry for a small explorer, emphasizing management’s prudence). Proceeds will be used to fund new geological work and an increased 7,000m+ drill program at the Eastside Project, where the Company is aiming to expand on its 1.4 Moz inferred gold resource.
AUAU plans to perform gravity surveys and other geological modelling to help derive new drill targets for the upcoming program. The larger than expected financing will unlock an expanded drill campaign (now over 7,000m vs. the previously reported plans for a 2,000-3,000m drill program).
Additionally, on June 2nd Allegiant completed a 2-for-1 consolidation of its common shares, reducing the number of issued and outstanding shares from 106.1M to 53.0M. The streamlined capital structure better aligns Allegiant with its peers and may broaden institutional interest ahead of continued corporate development. Since then, shares have rallied ~56%. We have updated our model to reflect the 2-for-1 share consolidation and financing. We are maintaining our BUY rating on Allegiant Gold, with our target price unchanged at $0.50/share on a pre-consolidation basis, or $1.00/share post-consolidation.
Insider Activity
Recent insider buying further reinforces our confidence in the Company’s positioning. Since March 1st, members of management and the board have collectively repurchased 695.3K shares on the open market, representing a total investment of $155.7K. These purchases mainly came from Shawn Nichols (Director) and Sean McGrath (CFO), underscoring strong alignment between shareholders and decision-makers ahead of a catalyst-heavy summer.
AUAU: Private Placement Supports Upcoming Drill Program
What you need to know:• Allegiant Gold closed a fully subscribed non-brokered private placement, raising $3.5M to support exploration at its flagship Eastside Project.
• With the new influx of cash, the Company excitingly has increased its planned drill program at Eastside from 2,000-3,000m to over 7,000m.
• AUAU also completed a 2-for-1 share consolidation, reducing its outstanding share count from ~106.1M to ~53.0M, as of June 2nd.
Allegiant Gold Ltd. (AUAU:TSXV, AUXXF:OTC) recently closed a private placement that was fully subscribed, raising proceeds of $3.5M through the issuance of 19.4M units at $0.18 per unit (presented on a pre-consolidation basis). Each unit included one common share and one-half warrant, with each whole warrant exercisable at $0.28/share for a 12-month period (a short expiry for a small explorer, emphasizing management’s prudence). Proceeds will be used to fund new geological work and an increased 7,000m+ drill program at the Eastside Project, where the Company is aiming to expand on its 1.4 Moz inferred gold resource.
AUAU plans to perform gravity surveys and other geological modelling to help derive new drill targets for the upcoming program. The larger than expected financing will unlock an expanded drill campaign (now over 7,000m vs. the previously reported plans for a 2,000-3,000m drill program).
Additionally, on June 2nd Allegiant completed a 2-for-1 consolidation of its common shares, reducing the number of issued and outstanding shares from 106.1M to 53.0M. The streamlined capital structure better aligns Allegiant with its peers and may broaden institutional interest ahead of continued corporate development. Since then, shares have rallied ~56%. We have updated our model to reflect the 2-for-1 share consolidation and financing. We are maintaining our BUY rating on Allegiant Gold, with our target price unchanged at $0.50/share on a pre-consolidation basis, or $1.00/share post-consolidation.
Insider Activity
Recent insider buying further reinforces our confidence in the Company’s positioning. Since March 1st, members of management and the board have collectively repurchased 695.3K shares on the open market, representing a total investment of $155.7K. These purchases mainly came from Shawn Nichols (Director) and Sean McGrath (CFO), underscoring strong alignment between shareholders and decision-makers ahead of a catalyst-heavy summer.
Underlying
ALLEGIANT GOLD
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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