Premium Exploration, Inc. (OTC: PMMEF) filed its report to shareholders and management discussion and analysis (MDA) of its financial position and results of operations. A copy can be found at Sedar.com.
Included in the report are forward-looking information and key assumptions, including the need for future funding to cover ongoing operations. Premium Exploration said it assumes that the company would be able to raise the funds.
The report came a week after it announced the sale of the Bennett Lumber Company Mill Site and the Red Elk Group's 13 patented mining claims to New Jersey Mining Corporation (OTCQB:NJMC). The $425,000 in total gross proceeds from the sale will be used to boost working capital.
It also discussed the announcement last October of a private placement of up to 22,000,000 units of the company to raise proceeds of $1,100,000.
"The Units and Finder's Warrants issued under the Private Placement are subject to a four-month hold period from the date of issuance, and the Private Placement is subject to final acceptance from the TSX Venture Exchange. The net proceeds of the Private Placement will be for the advancement of the Company's Idaho Gold Project and for additional working capital," Premium Exploration said.
The financing was closed in November with the payment of finder's warrants to Jackson Bennett LLC and Blue Creek Capital Corp.
Another private placement was announced in December to raise $500,000 for the same project. It closed in December with finder's warrants paid to Jackson Bennett LLCC, Haywood Securities Inc., and Jordan Capital Markets Inc.
The company in April cancelled its proposed private placement announcement, considering timing and "appropriate opportunities" in the gold market, according to GantDaily.com. It was supposed to offer 5,000,000 units of the company for the fundraising, with the end goal of reaching $1,000,000 in proceeds.
Earlier this year, Premium Exploration Chief Executive Officer John Ryan told Benzinga.com that the company is very bullish on gold mining in Idaho, which has a lot of history when it comes to gold discoveries. This is why they are concentrating their efforts on the area.
Ryan said the Federal Reserve's "money creation binge" policy makes gold firms very appealing because of concerns about inflation and "the long-term value of paper currency as an asset."
Premium Exploration is a mineral exploration company that has projects in Montana and Idaho. Its popular Idaho Gold Project resides along a 30-kilometer trend and has six zones: the Buffalo Gulch Zones, the Deadwood Zone, the Friday Zone, the Project X Zone, the Monday Zone and the Lucky Strike Zone.
Meanwhile, its Chrome Mountain Property in South-Central Montana is almost 1,500 hectares believed to have extensive platinum and palladium resources.
On Friday, gold prices closed at its best this month as tensions between Ukraine and Russia increased.
Gold has long been bought as anti-inflation edge and to secure money amid risk.
Gold for June closed at $1,302.90 per ounce on the Comex, $19.50 more than the day before (Thursday). Spot gold, on the other hand, was traded as high as $1,306, the biggest gain since April 4.