GFG Resources has closed a CA$5 million bought-deal financing, securing
funding for ongoing exploration at its flagship Rattlesnake Hills gold
project in Wyoming.
GFG
Resources Inc. (GFG:TSX.V; GFGSF:OTCQB) announced the financing on Jan. 31, 2017, and that the deal closed, bringing in CA$5,002,500, on Feb. 22.
"The net proceeds from the Offering will be used towards the Company's
2017 exploration drilling program at its 100% owned Rattlesnake Hills gold
project in Wyoming, U.S., and for general corporate purposes," the press
release states.
In the announcement, the company calls its 100%-owned Rattlesnake Hills
project "a district-scale gold exploration project" and states the
"geologic setting, alteration and mineralization seen in the Rattlesnake
Hills are similar to other gold deposits of the Rocky Mountain alkaline
province which, collectively, have produced over 50 million ounces of
gold."
In a December 2016 research report, Macquarie Research Analyst Michael
Gray notes that GFG has "significant Tier One, 20+ Moz Au district
discovery potential," and the Rattlesnake Hill project "hosts
similar alkaline geology to the 30+ Moz Cripple Creek mine in Colorado�these
alkaline systems have a relatively good track record for being economic and
large scale."
In addition, Gray commented that GFG has a "strong management
team," and that "importantly GFG knows what the beast looks like,
with three individuals on the team with +36 yrs overall experience at Cripple
Creek. We see strong potential for senior producer interest."
Following completion of the 2016 drill program, company president
and CEO Brian Skanderbeg stated, "I am very pleased with our progress at
Rattlesnake. The completion of our 2016 exploration programs, and the results
to date, set the stage for GFG to take advantage of our newly consolidated
land package. We have a better understanding of the district and have
identified over 30 targets that remain to be tested. We look forward to the
results of our 2016 drill program and to testing new regional targets in
2017."