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First Mining Issues First Tranche of Shares to Ausenco; Pre-Feasibility Study for Springpole Gold Project Underway
VANCOUVER, BC / ACCESSWIRE / January 15 , 2020 / First Mining Gold Corp. ("First Mining" o...
About this update from First Mining Gold Corp.
[{"type":"text","content":"First Mining Issues First Tranche of Shares to Ausenco; Pre-Feasibility Study for Springpole Gold Project UnderwayVANCOUVER, BC / ACCESSWIRE / January 15, 2020 / First Mining Gold Corp. (\"First Mining\" or the \"Company\") (TSX:FF)(OTCQX:FFMGF)(FRANKFURT:FMG) is pleased to announce that it has closed a private placement equity financing with Ausenco Engineering Canada Inc. (\"Ausenco\"), raising aggregate gross proceeds of approximately $750,000 (the \"Offering\").As detailed in the Company's news release dated November 14, 2019, First Mining has entered into an agreement with Ausenco to complete a Pre-Feasibility Study (\"PFS\") for the Company's Springpole Gold Project, located in northwestern Ontario, Canada (the \"Project\"). Ausenco has elected to be compensated in common shares of the Company (\"Shares\") as consideration for its engineering services.Pursuant to the Offering, First Mining issued 2,777,777 Shares to Ausenco at a price of $0.27 per Share. The net proceeds raised from the sale of the Offering will be used by First Mining to pay Ausenco for the first half of the costs of the PFS currently underway for the Company's Springpole Gold Project. The Shares issued under the Offering are subject to a statutory hold period of four months and one day from closing, expiring on May 16, 2020.\"We are very excited to have partnered with Ausenco as we continue to advance the Springpole Gold Project,\" stated Dan Wilton, CEO of First Mining. \"Work is now underway on the PFS, with an initial focus on trade-off studies and optimizations to further refine the ultimate scope of the Project. 2020 is a year of significant de-risking for the Project, with results of the PFS anticipated by year-end 2020 alongside advancement of the Project through the environmental assessment process. These advancements continue to highlight Springpole's potential to become one of Canada's largest gold mines.\"Further Ausenco Agreement DetailsOnce Ausenco has completed 75% of the PFS-related work, First Mining will issue to Ausenco a further $375,000 in Shares. Pricing will be based on the 30-day volume weighted average price (\"VWAP\") at the time, subject to the minimum pricing rules of the Toronto Stock Exchange (\"TSX\").Upon completion of the PFS and the announcement by First Mining of the PFS results, First Mining will satisfy the remaining a...