G2 Goldfields raises $42 million for Guyana gold project
G2 Goldfields Inc. [GTWO-TSXV, GUYGF-OTCQX] said Thursday it has raised $42 million from a non-brokered private placement offering and will use the proceeds to advance exploration activity at its Oko project in Guyana.
The private placement consisted of 28.9 million common shares priced at $1.45 per share. The company said a single European investor bought 20 million shares, while AngloGold Ashanti Ltd. [AU-NYSE, ANG-JSE, AGG-ASX]) raised its ownership stake to 15% by purchasing 8.96 million shares. That’s up from 12.8% prior to closing.
G2 Goldfields is headed by a team of professionals who have been directly responsible for previous gold discoveries in Guyana, including the funding and development of the Aurora Gold mine, Guyana’s largest gold mine.
OKO is accessed by a combination of boat and truck, using rivers and logging roads, from the town of Bartica and the Itaballi crossing on the Mazaruni River.
The company said five discrete, multi-kilometre long zones of gold mineralization have been delineated by soil sampling and mapping of historical and current artisanal mining operations.
In April, 2024, G2 announced an updated mineral resource estimate for the Oko property. Highlights included total combined open pit and underground resources for the Oko Main Zone, which stand at 495,000 ounces in the inferred category (2.4 million tonnes at 6.38 g/t gold), and 686,000 ounces in the indicated category (2.37 million tonnes at 9.03 g/t gold).
The Ghanie Zone is estimated to contain an inferred resource of 604,000 ounces (12.2 million tonnes at 1.54 g/t) and an indicated resource of 236,000 ounces (3.34 million tonnes at 2.20 g/t gold).
The company said it is worth noting that the updated resources lie within 500 metres of surface. An updated resource estimate is targeted for the first quarter of 2025.
The Oko district has been a prolific alluvial goldfield since its initial discovery in the 1870s, and modern exploration techniques continue to reveal the considerable potential of the district, GS has said.
G2 shares were almost unchanged following news that the latest financing has closed. The shares rose $0.01 or 0.64% to $1.57. The shares currently trade in a 52-week range of $1.69 and 57 cents.
Tajiri Resources Corp. [TAJ-TSXV] recently said it has struck a deal to purchase a vesting 65% interest in the Yono property in return for 40 million shares of the company that will be issued to privately-owned Guyana-registered company Nebula Resources Inc.