Dryden Gold aims to raise $3.5 million from upsized financing
Dryden Gold Corp. [DRY-TSXV, DRYGF-OTCQB] said it is upsizing a previously announced non-brokered equity financing that is expected to generate proceeds of up to $3.5 million. That’s up from an earlier $2.0 million target. Part of the proceeds are earmarked for drilling, and re-logging on the company’s flagship Dryden Gold property in northwestern Ontario.
The company said it plans to issue up to 27 million shares, consisting of flow-through shares, charity flow-through units and hard dollar units. The flow through shares will be offered at 13 cents per share. The charity flow-through units (CFT) will be offered at 15 cents each. The CFT units will consist of one flow-through share and one half of a common share purchase warrant. Each whole warrant will entitle the holder to buy one additional common share for 18 cents for two years.
The hard dollar units will consist of one common share and one half of a warrant. The company said the Flow-through shares, the CFT units and hard dollar units will combine for maximum proceeds of $3.5 million.
Subject to completion of documentation and regulatory approvals, the upsized financing will close in one or more tranches, the company said.
On Friday, Dryden Gold shares were unchanged at 12.5 cents. The shares currently trade in a 52-week range of 40 cents and $0.095.
The company recently announced details of an upcoming phase five drill program at the Gold Rock project, which is located within the company’s 60,000-hectare land package along the Manitou-Dinorwic deformation zone outside the town of Dryden, Ont.
The phase five program was scheduled to commence in late July 2024 and consist of 11 holes covering 1,300 metres. In a July 23, 2024 press release, the company said it had drilled four phases at Gold Rock. The company said the region consists of historic mining and drilling and represents a brownfields opportunity.
It said the phase five program would continue to advance the high-grade gold potential of the region by concentrating on the Big Master gold system. The planned holes were said to be preferentially focused on the plunge extension of the historically defined high-grade shoot, the newly identified shoot from phases one to four, and along strike extensional drilling to the southeast.
Highlights from all four phases of drilling include:
Confirmed orientation, structural controls, and expansion of a historically delineated high-grade shoot on Big Master Two, with hole KW-23-016 returning 3.81 g/t gold over 7.00 metres, including 71 g/t gold over 0.30 metres and KW-23-018, which returned 6.66 g/t gold over 4.30 metres, including 44.80 g/t gold over 0.27 metres.