Thesis Gold raises $27.5 million from upsized financing
Thesis Gold Inc. [TAU-TSXV] has raised $27.5 million from an upsized bought deal private placement. That’s up from earlier targets of $20 million and $24 million. The amount raised included the full exercise of the overallotment option available to the underwriting agents.
The gross proceeds will be used to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as defined under the Income Tax Act (Canada) at the Lawyers Ranch project in British Columbia.
The offering consisted of (i) 5.8 million common shares issued as “flow-through shares at price of $1.56 per BC CEE flow-through share for aggregate proceeds of just over $9.0 million (ii) 11.1 million common shares issued as “flow-through shares’ with respect to Canadian exploration expenses priced at $1.445 per National CEE flow-through share for aggregate proceeds of $16.06 million, (iii) 1.93 common shares issued as traditional flow-through shares priced at $1.30 per shares for gross proceeds of $2.5 million.
Existing shareholder Centerra Gold Inc. [CG-TSX, CGAU-NYSE] participated in the offering to maintain its shareholder interest of 9.9%. Centerra’s Kemess gold-copper mine is located only 60 kilometres southeast of Lawyer’s Ranch and has produced 3.0 million ounces of gold and 800 million pounds of copper.
Thesis Gold is a resource development company with a focus on its 100%-owned Lawyer’s Ranch project, which is located in B.C.’s Toodoggone Mining District. A recently completed preliminary economic assessment (PEA) highlights robust project economics, including a 35.2% after-tax IRR and after-tax NPV5% of $1.28 billion. The company has said its 2025 roadmap includes a robust exploration and drill program, delivery of a pre-feasibility study on the combined Lawyers-Ranch project, and commencement of the Environmental Impact Assessment process.
“Through these strategic moves, Thesis Gold intends to elevate the Lawyers-Ranch project to the forefront of global precious metals ventures.”
The project hosts an estimated mineral resource of 4.0 million-ounce gold-equivalent (AuEq) measured and indicated, at 1.51 g/t AuEq and 727,000 AuEq ounces inferred at 1.82 g/t. The project has significant exposure to silver via an 84-million-ounce silver resource (measured and indicated) at 31.9 g/t and a US1.48 billion life of mine silver revenue estimate.
Lawyers-Ranch is road accessible and five kilometres from the Sturdee Airstrip.
Soon after Thesis acquired the exploration rights in August 2020, a technical report, underlined the project’s potential, noting that 19 high-sulphidation epithermal gold deposits and/or prospects had already been discovered within a roughly 25 square kilometre area.
These are prospects with a potential link to a deeper porphyry system, which remains the blue-sky potential at Ranch.
Outside of the known mineralized zones, the report said roughly 85% of the property remained untested, while regions between the mineralized zones had been underexplored.
“Hence there is the potential for additional discoveries with continued funding and exploration,” the report said.
Thesis Gold shares were unchanged Wednesday at $1.05. The shares trade in a 52-week range of $1.27 and 51 cents.
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