US Gold Corp Prioritizes Debt Financing for Wyoming's CK Gold Project

US Gold Corp (NASDAQ: USAU) is proceeding with the financing of its CK Gold gold-copper project in Wyoming, focusing on debt rather than new equity to maintain its share structure. According to Chairman Luke Norman, the company has approximately 16.5 million shares outstanding, a relatively low number for a junior mining company.

The project's feasibility study indicates an after-tax net present value (NPV) of $632 million at a 5% discount rate and an internal rate of return (IRR) of 27% at a base-case gold price of $3,250 per ounce. Norman emphasized the low-risk profile of CK Gold due to its fully permitted status at the state level in Wyoming.

The company sees potential for over 1 million additional ounces beyond the current reserve and is planning to rely on debt financing as much as possible while avoiding streaming arrangements where feasible. Project financing is expected to be finalized within three months, with a built asset at target production potentially valued at up to $1.5 billion or more based on comparable peer groups.