U.S. Gold Corp. has attracted potential backers and suitors for its flagship asset in southeast Wyoming.

The exploration company in a letter to shareholders said its CK Gold project continues to garner interest from various sources of development capital. The asset also continues to attract interest from parties interested in mergers and acquisitions.

U.S. Gold said it has brought in advisers to consider these interested parties and formed a special committee to assess all M&A interest.

Interest in the project comes amid ongoing gold industry deal-making as the price of the precious metal remains elevated.

"U.S. Gold Corp. firmly believes that CK Gold is undervalued given current market conditions and opportunities beyond those identified in the current FS (feasibility study)," said Chief Executive and President George Bee.

The company in late March released a feasibility study on the construction-ready copper and gold project that projected an operation with an initial 11-year mine life, focused on 1.6 million troy ounces of contained gold equivalent. The study estimated an initial capital cost of $394 million and sustaining capital of $35 million over the life of the mine.

The company said it is also exploring a spin-out of its Keystone project, which sits near Nevada Gold Mines' Cortez operation in Nevada. It said it plans to advance and explore Keystone and make it beneficial to its shareholder base.