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Meadow Bay Gold Raises C$513,000 To Explore Atlanta Gold Mine

Meadow Bay Gold (TSE:MAY) has brought in C$513,000 via a non-brokered placing.

The net proceeds will be used for exploration at the company's Atlanta Gold mine in Nevada, USA as well as working capital.

Of the total 2,530,910 units, 2.19mln units were issued at a price of $0.20 per unit, and 340,910 units were issued at a price of $0.22 per unit to insiders of the company, it said in a stock exchange statement.

Those participating in the financing, included the chief executive, chief financial officer and the chief geologist, it added.

Each unit consists of one common share and one common share purchase warrant exercisable for a period of four years from the closing at a price of $0.30 per share in the first and second years, $0.35 in the third year and $0.40 in the fourth year.

This year an NI 43-101 resource estimate for the project based on 2011 and 2012 drilling has doubled gold ounces.

There are now 572,100 ounces of the yellow metal in the higher measured and indicated category, and 544,300 ounces of gold in inferred.

That compares with the estimate in July last year, of 375,869 ounces in indicated and 166,141 ounces of inferred.

It also contains 5.8 million ounces of silver in measured and indicated and 3.9 mln ounces silver in inferred.

The project lies in Lincoln County, Nevada, in the Atlanta mining district where gold is thought to have been first discovered in the 1860s and still benefits from power, water and roads.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.