Gold Terra raising $9.7 million for Northwest Territories drilling plan
Gold Terra Resources Corp. [YGT-TSXV, YGTFF-OTCQX, TXO-Frankfurt] has announced details of a $9.7 million non-brokered private placement offering, including participation from strategic shareholder David Harquail, a co-founder of Franco-Nevada Mining Corp. [FNV-TSX, NYSE].
Proceeds are earmarked for drilling at the company’s gold projects near Yellowknife, Northwest Territories.
The offering is expected to consist of 20 million common shares (HD shares) at an issue price of 18 cents for gross proceeds of $3.6 million and 20 million charity flow-through shares (the CFT shares) priced at 25 cents each for gross proceeds of $5.0 million, and 5.0 million flow-through common shares (FT) at an issue price of 22 cents for gross proceeds of $1.1 million. The CFT and FT shares will qualify as flow-through shares within the meaning of the Income Tax Act (Canada).
The offering is non-brokered with no warrants, and is expected to close around July 24, 2026, subject to acceptance by the TSX Venture Exchange.
Net proceeds will be used for general corporate purposes and for the drilling program scheduled to start in July/August, 2026. The company said there are two planned programs that will run concurrently which are expected to confirm and add ounces of gold both on the Con Mine Option property, currently under option from a subsidiary of Newmont Corp. [ NEM-NYSE, ASX, PNGX] as follows:
The northern extension of the Campbell Shear target, or zone 103 N where the company’s most recent inferred resource estimate has outlined 595,000 ounces within 5.1 million tonnes, grading 3.64 g/t between 600 metres and 900 metres below surface.
Part of the proceeds are also earmarked for the Con Mine historical on-site tailings, where 12.0 million tonnes of process ore residues were placed between 1938 and 2003. As past production was recorded with grades averaging up to 24 g/t gold and average recoveries between 88% and 93.5%, the company believes that the historical tailings could contain gold with an average of between 1.0 and 2.0 g/t gold. The program will be testing the Upper Pud and Middle Pud tailings area starting in August, 2026 with an initial pattern of 50 metres by 50 metres. The company also believes that since a gravity circuit was only installed in the late 1980s with Nerco that some residual coarse gold could be present in the lower levels of the historical tailings.
Gold Terra shares moved lower on the news, easing 5.3% or $0.01 to 18 cents on Monday. The shares trade in a 52-week range of 28.5 cents and $0.045.
Gold Terra holds a portfolio of gold exploration assets in the Northwest Territories and New Brunswick
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.
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