Sandspring Resources raises $51M

On the back of its Toroparu gold-copper project in Guyana,  Sandspring Resources (SSP-T) has raised $51 million in a bought deal financing.

The junior explorer issued just under 20 million shares priced at $2.60 each to an underwriting syndicate, co-led by Jennings Capital, GMP Securities and Mackie Research Capital. The new shares are subject to a 4-month hold period.

The proceeds from the financing will be used for the ongoing exploration and development of the Toroparu project, as well as for general corporate purposes.

Sandspring Resources is a relatively new public company representing 10 years of private operational experience in the Guyana. The production history of its predecessor is surface alluvial and saprolite mining, using truck and shovel to feed a 3,000-tonne-per-day gravity mill.

The future of the company is based on the development of an underlying primary bedrock gold-copper deposit at Toroparu, which was discovered in 2007. To date, a total of 1,500 metres of strike length have been drilled along a 10-km alluvial gold trend, defined by historical artisan mining in the Upper Puruni River region.

The latest Toroparu mineral resource estimate, released Sept. 15, 2010, was independently modeled by P&E Mining Consultants, as a potentially open-pittable deposit. An indicated mineral resource contains 2.6 million oz. gold, as well as copper credits, in 99 million tonnes grading 0.83 gram gold per tonne and 0.12% copper.

Inferred mineral resources hold other 3.4 million oz. gold, plus copper credits, in 140 million tonnes grading 0.76 gold and 0.07% copper. The pit model is still open to depth and mineralization extends along strike in both directions. Pit optimization and exploration drilling continues at this time.