McFarlane Lake Mining Ltd. (MLM:NEO;MLMLF:OTCQB) has announced that it plans to put units and shares of the company up for sale. It will offer, on a non-brokered private basis, up to 10 million units at a price of CA$0.15 per unit, and up to 7.5 million flow-through (FT) shares, at a price of CA$0.20 per FT share. The company is offering these in any combination to raise up to CA$1,500,000.
The company intends to use the net proceeds to expand its work in its West Hawk Lake and High Lake properties, located immediately west and east of the Ontario-Manitoba border respectively. It will also put the money toward general working capital. While drilling at West Hawk Lake in January 2022, McFarlane Lake Mining established and expanded the continuity of gold mineralization. It also confirmed the presence of high-grade intersections.
Similarly, positive results were reported from High Lake since drilling began recently, including a panel sample of 9.8 grams per tonne.
McFarlane Lake Mining is a Canadian gold exploration and development company. The West Hawk Lake and High Lake properties are its strongest prospects currently; two drills on the High Lake property are being drilled at a combined rate of just over 200 meters a day.
Among other announcements, like the fact it had attended the Vancouver Resource Investment Conference on January 29 and 30, at the Vancouver Convention Centre, the company announced that it had made changes to its board.
Guy Mahaffy, who’d been on the board since the company went public last year, has stepped down to pursue other interests. The board has since gained a member in Deborah Battiston (CPA), who has more than 35 years of financial management experience.
McFarlane’s Chairman and CEO Mark Trevisiol mentioned the company’s "ongoing exploration and development programs on its gold properties" when making the announcement.
The Catalyst: High Lake Exploration Results Later This Year
With a portfolio of six 100% owned properties, all located in Canada (a mining-friendly jurisdiction), McFarlane expects the results from its High Lake exploration program later this year once it’s completed in February. It will form part of a NI43-101 technical report on both properties.
Recent results from the exploration program look positive. Starting in November 2022, the program’s focus is on collecting and interpreting geophysical data. The company has also begun an 8,000 to 10,000-meter program of diamond drilling.
McFarlane has completed 36 holes, with a total length of 8,566 meters, and received assays for 16 holes. A key focus for the company is the Purdex Zone on the property, which has previously only been drilled to a depth of 100 meters, and which has shown significant potential.
Visible gold has been found in hole MLHL-22-12, which has been drilled 229.00 to 235.5 meters as measured in drill core length from the surface. Bob Kusins, Vice President of Geology for McFarlane, said the company is pleased with progress made so far, and that "it is clear that gold mineralization extends beyond historical intercepts."
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The Gold Market
According to Investing.com, gold is trading at an almost nine-month high, with markets waiting for an assessment of data that will help to predict whether the U.S. will go into recession this year, as inflation trends at an almost 40-year high.
In a recent study by the Bank of America, analysts announced that they expect gold to be a "mainstay asset for the next three years."
What’s more, European fund manager HANetf found, when studying 100 European and British wealth managers, that 89% had plans to increase their exposure to gold. In the report, the head of ETF research at HANetf, Tom Bailey, said, "it now may be the case that a lot of the negative sentiment towards gold has passed."
Ownership & Share Structure
Headquartered in Ontario, 28.3% of shares are owned by management, including directors. Approximately 56.7% is owned by retailers, with Canadian Star Minerals Ltd. as the largest shareholder, with 15.65% at 12.63 million shares.
President and CEO Mark Trevisiol has 13.42% with 10.83 million shares, while Director Perry Nicholas Dellelce has 9.98% with 8.05 million shares.
As of December 2022, McFarlane Lake Mining had a market cap of $8 million.
