First Mining Gold Corp (TSE: FF) (OTCQX:FFMGF) has now closed the three-stage US$22.5 million financing deal with shareholder First Majestic Silver Corp (TSE:FR) to advance its flagship Springpole gold project in Ontario - one of the largest undeveloped open pit projects in Canada.
The proceeds will be used to advance the asset through the pre-feasibility stage (PFS) and the environmental assessment processes, the company said in a statement.
READ: First Mining Gold strikes US$22.5M financing deal with First Majestic Silver Corp to advance Springpole gold project
First Majestic will have the right to buy 50% of the silver produced from Springpole over its life. First Majestic has paid upfront US$10 million to First Mining - US$2.5 million in cash and the remaining US$7.5 million in shares.
Upon completion of a positive pre-feasibility study, First Mining will receive US$7.5 million with a further US$5 million payable upon it receiving approval of a federal or provincial environmental assessment for the project.
Springpole currently hosts 4.67 million ounces of gold in the indicated category and 0.23 million ounces gold in inferred. A preliminary economic assessment (PEA) released last year showed an open-pit mine and milling process with the potential to produce an average of 410,000 ounces of gold per year.
Shares ticked up 5.7% in Toronto toC$0.46 each.
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