Gungnir Resources Inc (CVE:GUG) (OTCPINK:ASWRF) (FRA:AMO1), the Sweden-focused metals explorer, revealed that Palisades Goldcorp Ltd, the new Canadian merchant bank, is set to invest in the resource group.
In a statement, the firm said Palisades has agreed to purchase over 6.66 million units of the company at C$0.06 each for total gross proceeds of C$400,000. The shares closed in Toronto on Friday at C$0.08 each.
READ: Gungnir Resources hunting for gold in mining-friendly Sweden but has nickel in mind too as prices rise
The net proceeds will be used for continued exploration, including drilling at the firm's Knaften project, particularly the Knaften Gold zone and the company's two nickel resources - Rormyrberget and Lappvattnet.
Merchant bank Palisades already has a portfolio of over C$210 million of resource equities and offers investors exposure to a diversified portfolio of junior and micro-cap resource stocks. With junior resource companies valued at generational lows, it believes the sector is on the cusp of a major bull market move.
In the placing, each unit consists of one Gungnir share and one share purchase warrant. Each warrant entitles the holder to buy one share at a price of C$0.09 per share for 36 months from closing.
On August 7, Gungnir said it had "significantly" expanded mineralization via on-going drilling at the Knaften 300 gold zone at the flagship Knaften asset.
Gold mineralization at Knaften 300 is associated with disseminated arsenopyrite zones ranging from about two to 20 metres (m) wide, typically five metres.
Previous drill highlights by Gungnir and other operators include 14.07 grams per ton (g/t) of gold over 4.25 m from 138.75 m to 143 m in one hole, and 2.13 g/t of the yellow metal over 14.45 m, from 55 m to 69.45 m in another.
The firm also holds the Rormyrberget and Lappvattnet nickel deposits, located in the same general area of the Knaften property. The two deposits collectively contain over 70 million pounds of nickel, 10 million pounds of copper and two million pounds of cobalt in historic resources.
Knaften hosts high-grade gold, VMS (zinc-copper) and copper-nickel targets, all open for expansion.
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