Goldshore aims to raise $12.5 million for Moss gold deposit
Goldshore Resources Inc. [GSHR-TSXV, GSHRF-OTCQB, 8X00-FSE] has struck a deal with an underwriting syndicate in connection with the launch of a private placement that is expected to raise $12.5 million.
It said the placement will consist of any combination of flow-through shares priced at 47.5 cents each and charity flow-through shares priced at 53 cents per charity flow-through share.
The company said it has granted the agents an option to offer for sale up to an additional 15% of the flow-through securities in any combination, at their respective issue price. The overallotment option will be exercisable, in whole or in part, up to 48 hours prior to closing
Goldshore was unchanged at 38 cents and trades in a 52-week range of 39.5 cents and $0.085.
“The gross proceeds from the flow-through share sale will accelerate Goldshore’s strategic plan to advance the Moss gold deposit [in northwestern Ontario],” said Goldshore CEO Michael Henrichsen. “By raising funds at this juncture, the company will be in a position to execute a 15,000-metre winter drill program within the conceptual open pit,’’ he said. “The aim of the program will be to increase the ounce profile of the deposit and reduce the strip ratio by extending known mineralization vertically toward the surface and by increasing drill density in locations where mineralized intercepts are too widely spaced to be included in the inferred resource category,” he said. Henrichsen went on to say the company believes the results from this program will positively impact the economic performance of the project on the back of the PEA being completed by G Mining Services in the first quarter of 2025.
Goldshore recently has announced an updated mineral resource estimate for the Moss and East Goldstream deposits, which are both located on the Moss Lake project.
The updated estimate included a total indicated resource of 38.9 million tonnes of grade 1.23 g/t gold or 1.5 million ounces. On top of that is an inferred resource of 146.2 million tonnes of grade 1.11 g/y t gold or 5.2 million ounces.
Of that amount 1.2 million ounces of indicated and 4.9 million ounces of inferred material is contained in the Moss deposit. East Coldstream is estimated to contain 307,000 ounces of indicated gold, 280,000 ounces of interred metal. The new estimate was released ahead of a preliminary economic assessment, planned for this year.
The company said it also plans to conduct a discovery-based exploration program through top of bedrock sampling and a ground-based IP geophysical program in an area approximately 10 kilometres by six kilometres surrounding the Moss deposit to identify additional drill targets to realize the district-scale potential of the company’s land package. “Finally, this funding will allow us to rapidly advance our environmental work as we look to move towards the formal permitting process.’’