GoGold announces $125 million bought deal financing
GoGold Resources Inc. [GGD-TSX] has announced details of a $125 million bought deal offering and will use part of the proceeds for exploration and development of its Los Ricos projects in Mexico.
The company said a syndicate of underwriters has agreed to purchase, on a bought deal basis, 47.2 million units priced at $2.65 per unit, each of which will consist of one common share and half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share for $3.50 per warrant share for three years from the date of closing which is expected to occur on November 27, 2025.
GoGold has granted the underwriters an option to purchase up to an additional 15% of the offering to cover over-allotments, if any. That option is exercisable at the offering price for 30 days after closing.
On Wednesday, the shares were unchanged at $2.81 and trade in a 52-week range of $3.04 and $1.04.
GoGold recently reported a 45% increase in production for the year ending September 30, 2025. In that period, the company said its Parral mine in Mexico produced 2.15 silver equivalent ounces (AgEq), consisting of 851,102 silver ounces and 12,289 gold ounces, plus 476 tonnes of copper and 609 tonnes of zinc.
Parral delivered an excellent year for the company, GoGold said. “Through the year, it provided excellent cash flow, which continues to improve with the increase in metal prices,’’ the company said.
GoGold’s portfolio also includes the Los Ricos South and Los Ricos North exploration and development projects in the state of Jalisco.
Los Ricos consists of 29 concessions and covers over 22,000 hectares. The property is home to several historical mining operations and is located roughly 100 kilometres northwest of Guadalajara.
Los Ricos South includes the “Main” area, which is focused on drilling around a number of historical mines, including El Abra, El Troce, San Juan and Rascadero.
In a press release on February 28, 2025, GoGold announced the filing of a NI 43-101 compliant feasibility study technical report for Los Ricos South. It said the feasibility study includes a re-engineered 2,000 tonne per day underground mine plan compared to the preliminary economic assessment (PEA) which was released in September 2023, and incorporates an updated mineral resource estimate.
The feasibility study envisages a 15-year mine plan producing a total of 80 million payable silver equivalent ounces (AgEq), consisting of 41 million ounces of silver, 424,000 gold ounces and 11 million pounds of copper.
Also envisaged is an initial capital cost of $227 million, including 21 million on contingency costs, over an expected two-year build, and sustaining capital costs of $100 million over the life of the mine.
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