Revival Gold (CN:RVG) has raised just over C$9 million (US$7.1 million) in a private placement and could tap into Orion Mine Finance’s chequebook for more than US$25 million in future, as it advances the historic Beartrack gold project in Idaho, US.

Revival said it had formed a strategic relationship with Orion, which invested C$2.5 million and took a 14.6% stake in the company on a partially diluted basis in the recently-completed C$9 million private placement.

Under the relationship deal through to the end of 2019, the pair will enter good faith negotiations regarding any of Revival’s future funding requirements equal to or greater than US$25 million.

Any Orion acquisition or development financing could consist of a mix of debt, equity or metal streaming.

Revival president and CEO Hugh Agro said the high quality group of incoming new institutional shareholders and the relationship with Orion built on the company’s strong foundation for future growth.

He said Revival was now fully funded to complete 13,000m of core drilling at its 100%-owned Arnett Creek project and Beartrack, where it is earning up to 100% under a US$10 million deal with a Yamana Gold (CN:YRI) subsidiary.

Units in the private placement were issued at C$0.60 for one share and one half of a share purchase warrant, with the warrants exercisable at $0.90 per share for 24 months.

Shares in the company rose to C$0.77 on Friday, capitalising it over $19 million.

Created from mining-journal.com