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 Hills 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."
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