G2 Goldfields Inc. [GTWO-TSXV, GUYGF-OTCQX] said Wednesday it has upsized a fully subscribed private placement financing to $14.4 million, marking an increase from the previous $10.2 million target. It attributed the increase to strong demand from institutional shareholders.
The company said it now expects to raise $14.4 million by completing a non-brokered private placement of 24 million common shares priced at 60 cents per share.
Insiders of the company may subscribe for up to $1.5 million of the offering. G2â€™s Executive Chairman Patrick Sheridan has pledged to subscribe for 1.7 million shares, or $1.02 million.
Part of the proceeds are earmarked for exploration activities at the companyâ€™s 19,100-acre OKO project gold in Guyana.
G2 shares were unchanged at 63 cents and currently trade in a 52-week range of 83 cents and 38.5 cents.
G2 Goldfields is headed by a team of professionals who have been directly responsible for previous gold discoveries in Guyana, including the funding and development of the Aurora Gold mine, Guyanaâ€™s largest gold mine.
The OKO project is located in the southeastern portion of the Guyuni Mining District, approximately 120 kilometres west-southwest of Guyanaâ€™s capital city, Georgetown, and directly north of Reunion Gold Corp.â€™s [RGD-TSXV] Oko West project.
OKO is accessed by a combination of boat and truck, using rivers and logging roads, from the town of Bartica and the Itaballi crossing on the Mazaruni River.
The company said five discrete, multi-kilometre long zones of gold mineralization have been delineated by soil sampling and mapping of historical and current artisanal mining operations.
In a press release on April 26, 2022, the company announced a maiden underground resource estimate for the OKO Main Zone, which is estimated to contain an inferred resource of 3.3 million tonnes of 9.25 g/t gold or 974,000 ounces.
On top of that is an indicated resource of 793,000 tonnes of grade 8.63 g/t gold or 220,000 ounces.
The resource study estimates that the gold is hosted by three primary shear zones (S3, S4, and S5), which vary in length between 350 and 750 metres and have been explored to a maximum depth of approximately 350 metres where they remain wide open. Additionally, shear zones four and five are both open along strike to the north.
The company said it will be mobilizing two additional diamond drill rigs to the property to complement the three that are currently working to build upon the high-grade foundational resource.
Additional resources will also be committed to the greenfields exploration program currently in progress at the project, the company said.
â€œWe are delighted to announce this financing, backed primarily by five major institutional investors, which will allow the company to expand and expedite the current exploration program,â€™â€™ Sheridan said. The offering is expected to close in July, 2022.