GoGold raises $144 million from upsized bought deal
GoGold Resources Inc. [GGD-TSX] said Thursday it has raised $144 million from an upsized bought deal offering and will use the proceeds for exploration and development of its Los Ricos projects in Mexico. That’s up from an earlier $125 million target.
The company said it has now closed an offering of 54.24 million units priced at $2.65 per unit. The amount raised includes the full exercise of a 15% over-allotment option that enabled the underwriters to purchase an additional 7.07 million units. 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.
On Thursday, the shares eased 0.83% or $0.02 to $2.43 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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