Radisson Mining Resources Inc. recently declared that it is restarting exploration activities at the O’Brien gold project, in compliance with the Government of Quebec announcement on May 7th, 2020.
The wholly-owned O’Brien gold project is situated along the Larder-Lake-Cadillac Break, mid-way between Rouyn-Noranda and Val-d’Or in Abitibi-Témiscamingue, Quebec, Canada. Following the Government of Quebec directives, the head office stays closed, and teleworking remains in position for every department other than for exploration activities taking place at the O’Brien gold project.
So far, there have been no suspected or confirmed cases of COVID-19 at Radisson, and the company had executed a particular COVID-19 protocol on March 12th to safeguard its employees. The safety and health of Radisson’s employees, their families, and the communities in which the company functions is its main priority.
From now, the drilling contractors and exploration team of the company will be slowly mobilized at O’Brien to execute COVID-19 working procedures as per the suggestions from the Public Health and reference center (INSPQ) and the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST).
It is anticipated that drilling will restart and scale-up following the execution of the essential health and safety precautions. Radisson predicts the drilling activities to resume within the next 5 to 7 days.
60,000 m Drilling Program
From August 2019, 24,527 m of drilling has been performed. The main aim of the 2019/2020 drill program is:
- To verify the 2019 lithostructural model for O’Brien
- Resource conversion and expansion inside and outside the July 2019 resource boundary
- High-priority exploration targets determined down-plunge of high-grade enrichment vectors
Strong Balance Sheet and Insiders Buying
Complete funding for the completion of the 60,000 m drill program has already been provided to Radisson:
- Present cash balance of $6.6 M (as of May 7th, 2020)
- At O’Brien project all-in drill costs averaging around $110 to $120/m, which is well below the industry average
From the start of the year, the company’s insiders have purchased a total of 1,341,919 shares of the company on the TSX Venture Exchange. The management and insiders ownership is presently 10.88%.
Modification to the Stock Options Regime and Stock Options Grant
In accordance with its stock option plan, on April 27th, 2020, Radisson provided 50,000 stock options to an employee to purchase 50,000 Class A shares at an exercise cost of $0.17 for each Class A share for a period of five years.
Moreover, the company has declared that its Board of directors has approved a change in its stock option plan from 12,000,000 issuable stock options to 18,000,000 stock options, which represents below 10% of the 189,995,570 outstanding shares. This change is subject to regulatory approval, such as the TSX Venture stock exchange.