Edgemont Gold (EDGM.C) is currently in the process of raising C$1.75M in a placement priced at C$0.20 per unit with each unit consisting of one common share as well as 1/2 warrant with each full warrant allowing the warrant holder to acquire an additional share at C$0.30 for one year. Proceeds will be used to continue to explore its Dungate copper-gold project in British Columbia where neighboring company Sun Summit Minerals (SMN.V), the new name of San Marco Resources, recently discovered 17 meters of 5.86 g/t gold on its Buck property.
With just under 13 million shares outstanding and about 8.75M shares to be added upon completing this placement, the post-financing share count of 21.75M shares represents a market capitalization of just C$6M for an enterprise value of around C$4.5M. As Edgemont has also engaged Peak Marketing on a C$144,000 contract, EDGM will likely be able to generate some attention thanks to its own drill results as well as playing the ‘nearology’ card as Sun Summit’s drill results from the neighboring Buck project will be available way before the Dungate drill results will roll in.
Disclosure: The author has a small long position in Edgemont Gold. Please read our disclaimer.
