Gold Terra has announced an injection of up to $4.4 million to fund exploration work on the site of the former Con Mine south of Yellowknife.
The company says it expects to raise gross proceeds of $2.4 million through share issues and a further $2 million in a deal with Osisko Gold Royalties.
Gold Terra chairman Gerald Panneton said the Osisko Gold Royalties agreement was a “huge endorsement” of the company’s strategy.
“The proceeds raised will allow us to continue our drilling program” on the former Con Mine site, Panneton added.
Con Mine, on Yellowknife’s southern edge, was a major gold producer until it closed in 2003. Remediation of that mine is almost complete.
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For Gold Terra, the key is finding enough gold under Con – or nearby – to justify opening a fresh mine that could use some old Con assets, like the Robertson shaft, which was sunk in the 1970s and extends nearly two kilometres below ground.
According to its public statements to date, the company hasn’t yet reached the tipping point at which a mine becomes a viable prospect.
