Garibaldi raises $2.6 million for Nickel Mountain drilling

Garibaldi Resources Corp. [GGI-TSXV, GGIFF-OTC] said Wednesday it has raised $2.65 million from the sale of 8.8 million flow-through units priced at 30 cents each, with proceeds earmarked for exploration at the company’s base metal projects under a new Federal Government initiative announced in the most recent budget.

Each unit consists of one flow-through common share and one half of one common share purchase warrant. Each whole warrant is exercisable at 45 cents per share for a period of three years.

The amount raised marks the first tranche of a non-brokered private placement offering that was announced on November 29, 2022. The company said it was to consist of up to 10 million flow-through units priced at 30 cents each (for proceeds of $3.0 million) and 4.0 million non-flow-through units priced at 25 cents each (gross proceeds $1 million).

On Wednesday, the company said the first tranche of units includes 800,000 non-flow-through units priced at 25 cents per unit, generating aggregate proceeds of $200,000.

On December 6, 2022, Garibaldi shares closed at 22.5 cents and currently trade in a 52-week range of 65 cents and 20.5 cents.

The company said follow-up drilling will test for mineralization associated with broad ZTEM low-resistivity anomalies identified by a property-wide Geotech ZTEM survey on the company’s Nickel Mountain property in northwestern British Columbia. The 180-square kilometre claim group is centred in the heart of the Eskay District within the Golden Triangle of Northwestern, B.C.

Nickel Mountain contains the E&L project, which ranks as the first magmatic nickel-copper-rich massive sulphide system to be discovered in B.C.’s Golden Triangle region which is known historically for its endowment of gold and silver.

Interest in Nickel Mountain was triggered in the summer of 2017 when drill hole EL-17-14 intersected 8.3% nickel, 4.2% copper, 0.19% cobalt, 1.96 g/t platinum, 4.5 g/t palladium, 1.1 g/t gold, and 11.1 g/t silver over 16.75 metres starting just 100.4 metres downhole, within a broader 40.4 metre core length highlighted by 3.9% nickel and 2.4% copper.

So far, a number of distinct massive sulfide zones have been intercepted close to the contact of the E&L Intrusion, including the Lower and Upper Discovery Zones, Northwest Zone, Northeast Zone and Crevasse Zone.

Garibaldi’s 2022 drill program has focused on testing several large-scale low resistivity ZTEM anomalies within the E&L nickel-copper-cobalt massive sulphide project.

In a September 22, 2022, news release, Garibaldi said diamond drilling (hold EL-22-97b) has intersected nickel-bearing disseminated and semi-massive sulphide mineralization located 203 metres down trend of the previous deepest mineralized intercept at E&L on Nickel Mountain.

The drill hole targeted the down plunge extension of the eastern zone of the E&L Intrusion, coincident with a large-scale low resistivity/elevated conductivity ZTEM anomaly identified last season by Geotech’s deep-penetrating survey.

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