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Pershing Gold set to bring in over US$13mln to advance Relief Canyon project

The emerging producer announced a public offering of stock to run concurrently with a private placing

The Pershing project is in Nevada - a hotspot for mining

Pershing Gold Corporation (NASDAQ:PGLC, TSX:PGLC) unveiled plans to raise more than US$13mln via financings to advance its Relief Canyon project in Nevada.

The emerging producer announced a public offering of stock to run concurrently with a private placing to a group of select investors.

The former sees the firm issue, via a syndicate of underwriters, 2.43mln shares and warrants to buy up to 972,000 shares at $2.80 a pop.

READ THE BIG PIC - Pershing Gold pushing towards production at Relief Canyon, says upbeat broker

There is an associated four-tenth common stock warrant, for gross proceeds, before deducting underwriting commissions and estimated offering expenses of $6.8 million.

The firm also announced a private placing of 2.43mln shares and warrants to buy 972,000 shares to be issued to select private investors at the same price for both as the public offering for gross proceeds also of $6.8mln.

Pershing "intends to use the proceeds from the public offering and the private placement to advance its Relief Canyon project, including pre-construction and development and exploration drilling to expand mineralization at Relief Canyon and/or for general corporate purposes," it said in the regulatory statement.

The group reached a big  milestone for the project in June this year, when it issued a preliminary feasibility study, which significantly, showed a greater life of mine production amid slightly higher initial and sustaining capital expenditure.

The project was handed a pre-tax net present value (NPV), or in other words, an overall value, of $144.6 million.

WATCH - 'It's a very exciting time for us' - Pershing Gold's Jack Perkins

Initial capital spend was put at $23.6mln - up from $12.2mln in the preliminary economic assessment (PEA), while the all in sustaining costs (AISC) were stated as $802 per ounce ($804 per ounce in the PEA).

The life of mine is 5.6 years, down a tad from 5.8 years in the PEA, but average production over that time was put at 93,900 ounces, compared to 88,500 ounces in the earlier PEA.

In October, broker H.C Wainwright repeated a 'buy' recommendation on the shares.

Quick facts: Pershing Gold

Price: - CAD

Market: TSX
Market Cap: -

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'It's a very exciting time for us' - Pershing Gold's Jack Perkins

Jack Perkins, vice president of investor relations at Pershing Gold Corporation's (NASDAQ:PGLC, TSE: PGLC) talks Proactive's Andrew Scott through their resource estimate and preliminary feasibilty study (PFS) for the Relief Canyon project.

on 9/6/17

2 min read