Dryden Gold up 11.5% on Centerra investment news
Dryden Gold Corp. [DRY-TSXV, DRYGF-OTCQB] has announced details of non-brokered private placement that is expected to raise $3.38 million with proceeds earmarked for Dryden’s 70,000-hectare property in the Dryden gold district of northwestern Ontario. It said the private placement will consist of 14.9 million common shares. The company also said Centerra Gold Inc. [CG-TSX, CGAU-NYSE] has agreed to make a strategic investment whereby Centerra will acquire approximately 9.9% of the issued and outstanding shares of Dryden following completion of the offering.
The offering will consist of 11.9 million charity flow-through shares priced at 24 cents per CFT share, and 2.9 million hard dollar shares priced at 17 cents per HD share, generating total proceeds of $3.77 million at an average price of 23 cents per share. The offering is expected to close on December 17, 2024.
On Tuesday, Dryden Gold shares rose 11.5% or $0.015 to 14.5 cents. The shares currently trade in a 52-week range of 40 cents and $0.095.
“We’re very excited to welcome Centerra as a new strategic investor in Dryden Gold,’’ said Dryden CEO Trey Wasser. “Centerra is using its strong balance sheet to focus on organic growth through strategic investments and is providing valuable capital to select junior mining companies,’’ he said.
“We look at this investment as a strong validation of our property, our Team and the science behind our exploration program.’’
Following a recently closed financing, the company will now be fully financed through 2025 with a $5.8 million exploration budget and an additional $2.0 million to cover G&A, marketing and our final property payment to Alamos Gold Inc. [AGI-TSX, NYSE].
Dryden’s property package includes historic gold mines but has seen limited modern exploration. The property hosts high-grade gold mineralization over 50 kilometres of potential strike length along the Manitou-Dinorwic deformation zone.
On November 12, 2024, Dryden announced drill results on the Elora Gold System on the Gold Rock project, which is located within the company’s land package along the Manitou-Dinorwic deformation zone outside the town of Dryden, Ont.
The Phase 5.0 drill program was completed this summer and was designed to follow up on the high-grade shoot discovered on the Elora Target.
Hole KW-24-024 intersected the mineralized zone at approximately 190 metres from surface and returned 8.93 g/t gold over 12.45 metres, including 32.96 g/t gold over 2.73 metres. In addition, this hole intersected a hanging wall structure that returned 1.67 g/t gold over 2.75 metres, including 8.41 g/t gold over 0.43 metres.
The company said this is Dryden’s deepest hole to date and is Dryden’s widest and most consistently disseminated high-grad intercept at Elora.
“We have already shown that the Gold Rock Camp has significant near surface, high-grade gold and now we are beginning to show that this is also a typical Archean Gold System with deep roots,’’ Wasser said.