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"[It'll] offset the somewhat more expensive and seasonal exploration costs"

Rover Metals (TSXV: ROVR) has announced plans to acquire a Nevada project it believes will be less costly to explore than its Northwest Territories assets.
"[It'll] offset the somewhat more expensive and seasonal exploration costs" "[It'll] offset the somewhat more expensive and seasonal exploration costs" "[It'll] offset the somewhat more expensive and seasonal exploration costs" "[It'll] offset the somewhat more expensive and seasonal exploration costs" "[It'll] offset the somewhat more expensive and seasonal exploration costs"

The Rover team on a site visit to Cabin Lake in Canada’s NWT

Staff reporter

The junior announced a non-binding letter of intent for an all-scrip acquisition of Centennial Mining, which owns the Toquima precious metals project in Nevada's Corcoran Canyon.

Toquima has two historic resource estimates, one outlining 1.13 tonnes at 247.54g/t silver and 0.891g/t gold, Rover said.

The company plans to issue 40 million shares to the vendor, and said it had also re-priced a previously announced private placement, designed to raise C$1.25 million (US$94 million) at 8c per unit.

It hopes to raise the same amount by issuing 20.8 million units now priced at 6c each.

Rover plans to use 65% of the proceeds for Toquima, 15% for its Cabin Lake gold project in the NWT and 20% for general and administrative expenses.

"The Toquima property brings Rover Metals a lower cost per metre precious metals exploration project to offset the somewhat more expensive and seasonal exploration costs of our existing Northwest Territories, Canada assets," CEO Judson Culter said.

"The Toquima Property is available for year-round exploration."

Rover acquired Cabin Lake in August 2018 and has an option over the Up Town Gold property, also in the NWT.

Having recently completed an OTCQB listing, Culter said Rover needed a US-based asset in a mining friendly jurisdiction.

Rover had listed on the TSX Venture Exchange in June following a reverse takeover of Royal Lifescience Corp and raising $1.5 million (US$1.1 million) at 12.5c per unit and 14c per flow-through unit.

The company had about $865,000 (US$648,000) in working capital at the end of September.

Its shares last traded at C6.5c, a midpoint in its range to date, capitalising it about $3 million.