Gold Terra raising $7.0 million from upsized financing
Gold Terra Resources Corp. [YGT-TSXV, YGTFF-OTCQX, TXO-Frankfurt] said it is upsizing a previously announce private placement financing that is now expected to raise $7.0 million, up from the earlier $6.3 million target.
The company has said the financing is backed by a new strategic investor and Franco-Nevada Mining Corp. [FNV-TSX, NYSE] co-founder David Harquail and existing shareholder, the Bay Street financier Eric Sprott.
Under a revised non-brokered private placement financing, the company will issue 55 million common shares, consisting of 15 million common shares at an issue price of 10 cents each for gross proceeds of $1.5 million, 35 million charitable flow-through common shares at an issue price of 14 cents per share for gross proceeds of $4.9 million, and 5.0 million flow-through common shares priced at 12 cents each for gross proceeds of $600,000.
The company said it will use gross proceeds from the sale of the charitable flow-through shares and flow-through shares to incur eligible Canadian exploration expenses that qualify as “flow-through mining expenditures” as defined in the Tax Act on or before December 31, 2026.
Gold Terra shares moved lower on the news, easing 13.3% or $0.02 to 13 cents on Monday. The shares trade in a 52-week range of 16.5 cents and $0.045.
Gold Terra holds a portfolio of gold exploration assets in the Northwest Territories and New Brunswick. The most advanced of these assets is the Con Mine Option Property, which lies adjacent to the city of Yellowknife, NWT. Gold Terra recently announced an initial resource estimate of 109,000 gold ounces in the indicated category and 432,000 ounces in the inferred category on the Con Mine Option Property. The company’s Yellowknife City Gold project is contiguous to the Con Mine Option Property and has an inferred resource of 1.2 million ounces.
The company’s focus is on high-grade gold targets on its 100%-owned (plus 800 square kilometre) land position along the Campbell Shear structure package which is on the same trend as the former Giant and Con mines. Giant and Con produced 8.1 million ounces of gold and 6.1 million ounces respectively.
Net proceeds from the latest financing will be used for a drilling program scheduled to start in January, 2026 on the southern extension of the Campbell Shear target between surface and 600 metres below surface on the Con Mine Option property where the company has the right to acquire a 100% interest from a subsidiary of Newmont Corp. [NEM-NYSE, ASX].
The proposed drill program at the Con Mine is aimed at increasing the current indicated and inferred resource near surface and south of the Con Mine, targeting the Campbell Shear structure. The Con Mine closed in 2003 when gold was trading at around US$340 an ounce.
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