Founders Metals unveils $15 million bought deal financing
Founders Metals Inc. [FDR-TSXV] has announced details of a $15 million bought deal financing, money that will be used to fully fund exploration activities at its Antino Gold Project in Suriname, South America, the company said in a press release.
Under an agreement, a syndicate of underwriters have agreed to purchase on a bought deal basis, 6.25 million common shares at a price of $2.40 per share.
Founders said it has agreed to terms of a non-binding letter of intent with a major precious metals producer for a 5.0% equity investment. It said complete details of the transaction will follow in separate press releases.
Subject to necessary regulatory approvals, the offering is expected to close by October 24, 2024.
On October 9, 2024, Founders shares closed at $2.45 and currently trade in a 52-week range of $3.13 and 76 cents.
Founders Metals is focused on acquiring and advancing gold projects in the South American Guiana Shield. Its flagship property is the 20,000-hectare Antino project, where previous work has included over 30,000 metres of historical drilling, 35,000 gold-in-soil auger samples, and property wide aeromagnetic survey data, plus a 2022 LiDar survey.
Antino is the most advanced exploration project in Suriname. It is located in an area where historical surface/alluvial gold mining has produced over 500,000 ounces of gold. The company drilled 10,000 metres in 2023 and is fully financed for drilling in 2024.
“The consistently strong assay results highlight the extent and continuity of mineable widths of high-grade gold on the property,’’ Founders CEO Colin Padget has said.
The company previously said drilling has continued to deliver high-grade gold intercepts as it broadens and extends gold mineralization in the project’s Upper Antino area. Drilling highlights include hole 23FRO14, which returned 15.50 metres of 30.72 g/t gold, including 5.80 metres of 54.61 g/t.
Gold mineralization at upper Antonio occurs in multiple sub-vertical structures within a larger northwest trending shear zone that transects much of the Antonio property. Mineralized zones commonly consist of pyrrhotite/pyrite-bearing quartz or quartz carbonate veining surrounded by a strongly foliated, gold-bearing mix of host rock, quartz and up to 35% sulphides.
Founders recently named Chris Taylor as a new independent director to the company’s board of directors. Taylor is a structural and economic geologist with over two decades of experience in both junior exploration and mid-tier mining companies. As founder, President and CEO of Great Bear Resources, he led the company to a major district-scale gold discovery in Canada, culminating in its acquisition by Kinross Gold Corp. (K-TSX, KGC-NYSE) for $1.8 billion.