- ESGold is celebrating the successful close of a private placement funding effort that will generate important financing for the company’s planned launch of a mine tailings cleanup and reclamation project later this year
- The financing drive was oversubscribed by more than 11%, which ESGold executives hail as evidence that investors like the company’s strategy for generating revenue
- The company holds 265 mining claims on the historic Montauban mine site in Quebec, covering 13,116 hectares (about 32,410 acres) of gold and silver exploration
- ESGold expects to begin mill circuit production on the tailings cleanup later this year
- Mica recovered in the reclamation would be used in an innovative concentrate that is stronger than concrete and usable for construction materials such as bricks, parking columns, and highway Jersey barriers
ESGold (CSE: ESAU) (OTCQB: ESAUF), a pre-production gold and silver resource developer operating in Canada, has closed its recent non-brokered private placement funding effort after seeing a successful raise of $3,649,171 in aggregate gross proceeds to assist its pending processing of a site’s abandoned tailings.
“This Offering was over-subscribed by more than 11% as a direct result of large investments by existing shareholders and new strategic investors who recognized that ESGold is focused and on track to production in the very near future,” ESGold CEO and Director Paul Mastantuono stated in a June 25 news release on the situation (https://ibn.fm/a3phQ).
ESGold is preparing to begin production later this year on a toxic tailings cleanup operation that will extract mica as well as any remaining gold and silver at the company’s mining claims on the historic Montauban mine site in Quebec, 80 kilometers (49.7 miles) west of the province’s capital city. The tailings cleanup effort is expected to generate significant asset value for shareholders through revenues derived from the cleanup operation, particularly by way of selling a concentrate that will be useful in building materials such as bricks, cinder blocks, paving stones, patio tiles, parking columns, and highway Jersey barriers.
ESGold has partnered with private consultancy DMCMS Inc., whose clean technology fuses mine waste with an organic polymer to create the concentrate, which is stronger than concrete. The cleanup will also allow ESGold to shine as the company fulfills its corporate sustainability goal of restoring mine sites back to a natural “green” state.
Production is expected to begin by year-end, and the private placement raise will be used for the construction of the mill circuit and related assembly, as well as needs for final mobilization of the project and general working capital requirements, according to the company.
As revenues are generated by the gold, silver, and mica recovered from the tailings cleanup, the company will begin working to reinvest it in new district scale exploration potential at the Montauban mine site.
The company’s strategic plan has proved popular with existing investors, including key stakeholders as well as New York-based hedge funds and family offices. “Their ongoing participation highlights the growing institutional confidence in ESGold’s clean production model and its near-term exploration potential,” a June 23 news release adds (https://ibn.fm/7f9Fr).
“We have the capacity to generate on our first four, five years, close to $350 million on this low-hanging fruit (the tailings mineral cleanup and reuse), with almost zero (additional) cost,” Mastantuono said during an interview with the Exploring Mining Podcast that highlighted the company’s excitement for its successful ramp-up thus far (https://ibn.fm/a5sUH).
For more information, visit the company’s website at https://esgold.com.
NOTE TO INVESTORS: The latest news and updates relating to ESAUF are available in the company’s newsroom at https://ibn.fm/ESAUF
