First Mining raises $10.8 million for Ontario, Quebec gold projects

First Mining Gold Corp. [TSX-FF, OTCQX-FFMGF] said it has further upsized and closed a previously announce non-brokered private placement financing, raising approximately $10.8 million across two tranches of the offering.

First Mining is a gold developer advancing two of the largest gold projects in Canada. They include the Springpole gold project in northwestern Ontario, where it has commenced a feasibility study and permitting activities are continuing with a draft environmental impact statement for the project published in June, 2022. Springpole hosts an indicated resource of 4.6 million ounces of gold and 24.3 million ounces of silver.

First Mining also owns 100% of the Duparquet gold project in Quebec. Duparquetis a multi-million-ounce preliminary economic assessment stage development project located in the Abitibi region of Quebec, approximately 50 kilometres north of the city of Rouyn-Noranda. The Duparquet deposit contains a gold resource of 3.4 million ounces of gold in the indicated category, plus an additional 2.6 million ounces of inferred material.

Existing infrastructure at the project site includes paved provincial highways, from Rouyn-Noranda to the south and LaSarre to the north, plus direct access to Quebec’s hydroelectric power grid. The project is located in an area with a strong history of sustainable mining practises.

On Friday, the company said the second and final tranche of the offering consisted of 22.7 million units priced at 12.5 cents per unit, generating gross proceeds of $2.83 million. Each unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of 20 cents per warrant share at any time prior to a date which is three years after the closing date of the final tranche.

The first tranche of the offering raised approximately $8 million. Proceeds will be used to advance the Springpole and Duparquet gold projects as well as for general working capital and corporate purposes.

First Mining shares were unchanged at 13 cents, Friday. The shares are currently trading in a 52-week range of 24.5 cents and 11.5cents.

Prior to the Duparquet acquisition, First Mining had previously assembled a resource base of 7.3 million ounces of gold in the measured and indicated categories and 3.6 million ounces of gold in the inferred category in eastern Canada.

The company’s portfolio includes the Goldlund project, which covers 28,572 hectares and is located 60 kilometres northeast of Dryden Ontario. The property has been extensively explored and hosted an underground and open pit mine between 1982 and 1985.

The Goldlund project contains an indicated resource of 12.86 million tonnes of grade 1.96 g/t gold, containing 809,000 ounces. On top of that is an inferred resource of 18.4 million tonnes, grading 1.49 g/t, or 876,954 ounces.