GoGold raises $75 million for Los Ricos silver project, Mexico
GoGold Resources Inc. [GGD-TSX] has arranged a $75 million bought deal financing. Proceeds of the offering will be used for the development of the company’s Los Ricos South project and for exploration activities at both the Los Ricos South and North projects.
The company said an underwriting syndicate has agreed to buy, on a bought deal basis, 41.21 million common shares at $1.82 per share. The underwriters have been granted the option to purchase up to an additional 15% of the offering to cover overallotments, if any. That option is exercisable at the offering price for 30 days following the date of closure, which is expected to occur on April 4, 2025.
The shares eased 7.6% or 10.5 cents to $1.26 on Thursday and trade in a 52-week range of $2.10 and $1.04.
The company operates the Parral Tailings mine in the state of Chihuahua. It also has the Los Ricos South and Los Ricos North exploration and development projects in the state of Jalisco.
Los Ricos consists of 29 concessions and covers over 22,000 hectares. The property is home to several historical mining operations and is located roughly 100 kilometres northwest of Guadalajara.
Los Ricos is split into two projects, Los Ricos South and Los Ricos North. They are 25 kilometres apart.
Los Ricos South includes the “Main” area, which is focused on drilling around a number of historical mines, including El Abra, El Troce, San Juan and Rascadero.
In a press release on February 28, 2025, GoGold announced the filing of a NI 43-101 compliant feasibility study technical report for Los Ricos South. It said the feasibility study includes a re-engineered 2,000 tonne per day underground mine plan compared to the preliminary economic assessment (PEA) which was released in September 2023, and incorporates an updated mineral resource estimate.
The feasibility study envisages a 15-year mine plan producing a total of 80 million payable silver equivalent ounces (AgEq), consisting of 41 million ounces of silver, 424,000 gold ounces and 11 million pounds of copper.
Also envisaged is an initial capital cost of $227 million, including 21 million on contingency costs, over an expected two-year build, and sustaining capital costs of $100 million over the life of the mine.
The average all-in-sustaining cost is pegged at US$11.19 per AgEq ounce over the first five years of production, with an average AISC of US$12.32 an ounce AgEq over the underground mine life.
Average annual production is estimated at 7.3 million AgEq over the first five years.
Other highlights include the successful conversion of mineral resources to proven and probable mineral reserves totalling 10.2 million tonnes of grade 276 g/t AgEq, containing 91 million ounces of AgEq, including 7.5 million underground tonnes, grading 326 g/t AgEq.
“Now the company finds itself in the position once our permit is in hand, to build our first mine in the Los Ricos district,’’ said GoGold President and CEO Brad Langille. “This will be potentially followed by our second mine at Los Ricos North.’’