Cassiar Gold raises $5.9 million for B.C. project, shares up

Cassiar Gold Corp. [GLDC-TSXV, CGLCF-OTCQX] said it has raised gross proceeds of $5.9 million from a previously announced private placement financing. The amount raised includes the underwriters’ option to purchase additional units to cover over-allotments.

Part of the proceeds will be used to fund eligible Canadian exploration expenses at the company’s flagship Cassiar Gold project in northern British Columbia, with such expenses being incurred before December 31, 2026.

Cassiar Gold shares rallied on the news, rising 6.5% or $0.015 to 24.5 cents in early trading Wednesday. The shares currently trade in a 52-week range of 30 cents and 18 cents.

Under the terms of the offering, the company sold 1.23 million flow-through shares and 12.56 million flow-through units sold to charitable purchasers at a price of 36 cents per FT Unit for gross proceeds of $4.96 million. It also sold 4.13 million units priced at 25 cents each, generating gross proceeds of $1.03 million.

Each FT unit consists of one common share and one common share purchase warrant, each of which has been issued as a flow-through share as defined in the Income Tax Act (Canada). Each unit consists of one common share and one common share purchase warrant. Each warrant and each FT warrant entitles the holder to purchase one common share for 50 cents at any time on or before July 29, 2027. Any common shares to be issued upon the exercise of the FT Warrants will be issued on a non-flow-through basis.

Cassiar is a British Columbia-focused exploration company. It holds a 100% interest in its flagship Cassiar gold project, which spans 590 square kilometres and consists of two main project areas known as Cassiar North and Cassiar South.

Cassiar North holds a NI-43-101-compliant inferred resource estimate of 1.93 million ounces, grading 0.95 g/t (cutoff grade 0.4 g/t) and known as the Taurus Deposit. The company said 91% of ounces occur within 150 metres of surface.

Cassiar South hosts numerous gold showings, historical workings and exploration projects over a 15-kilometre long and up to 10-kilometre-wide trend. Historical underground mines in the Cassiar South area have yielded over 315,000 ounces of gold at grades of between 10 and 25 g/t gold, underscoring the high potential for further discovery of bonanza-grade orogenic gold veins.

The area is accessible via Highway 37, which bisects the property, and access roads throughout the property. The project has a 300 tonne-per-day mill for future operations and a permanent camp.

The company also holds a 100% interest in the Sheep Creek gold camp in Salmo, B.C. The Sheep Creek gold district ranks as the third largest past producing orogenic gold district in B.C, with historical production of 742,000 ounces of gold at an average grade of 14.7 g/t gold from 1900 to 1951. Minimal exploration work has been conducted since the 1950s, Cassiar said in a press release.