First Nordic raises $11.5 million for Swedish gold exploration

First Nordic Metals Corp. [FNM-TSXV] has raised $11.5 million from a previously announced bought deal private placement. The company said net proceeds will be used for exploration at the company’s Gold Line belt projects in northern Sweden and for general working capital and corporate purposes.

The amount raised includes the exercise in full of the option granted to the underwriters. The offering consisted of 34.8 million units priced at 33 cents per unit.

Each offered unit consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share for 45 cents for two years from the closing date of the offering.

First Nordic shares were unchanged Wednesday at 30 cents and trade in a 52-week range of 41.5 cents and 10 cents.

The company’s flagship asset is the Barsele gold project, located in northern Sweden, and in a joint venture with senior gold producer Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE), which holds a 13.3% stake in First Nordic. Immediately surrounding the Barsele project, First Nordic is the 100% owner of a district scale land position of close to 100,000 hectares on Gold Line belt. Additionally, in northern Finland, the company is the 100% owner of a district-scale position covering the entire Oijarvi greenstone belt.

Back in July, 2024, First Nordic said it had launched a summer/fall exploration program at the Gold Line belt. It said major parts of the program included a 25,000-hectare magnetic geophysical survey and regional-scale surface exploration program on its 100%-owned Storjuktan Project, and top-of-bedrock (base of till) drilling programs to test kilometric till anomalies at the 100%-owned Paubacken and Klippen projects. The region is covered by glacial till and base of till drilling is well recognized as the main method for zoning in on the best diamond drilling targets in these terrains.

“Paubacken already has three kilometric targets and Storjuktan is emerging very well with our recent discovery of the +5.0 kilometre Nippas target,’’ said First Nordic President and CEO Taj Singh. “We are also very excited to begin work on the Klippen project, which hosts a cohesive +5.0 kilometre gold and pathfinder glacial till anomaly,’’ he said. “Base of till drilling is a proven tool for exploration in the Nordics and was instrumental in our successful diamond drilling discovery at the Aida target on the Paubacken project. We are focused on making discoveries at our Gold Line projects to advance what we believe is Europe’s next major gold belt.’’

The company said the cost of the summer/fall exploration program was estimated at $500,000. First Nordic also said it is funded to carry out a diamond drilling program of 10,000 to 15,000 metres on its Gold line belt projects. It said the plan was to begin this in the fourth quarter of 2024 and first quarter of 2025.