Goldshore raising $5 million for Ontario gold project
Goldshore Resources Inc. [GSHR-TSXV, GSHRF-OTCQB, 8X00-FSE] said it aims to raise $5 million from a public offering with part of the proceeds earmarked for exploration expenses at the company’s Moss Lake project in northwestern Ontario.
The offering will consist of a combination of:
- Conventional units priced at 25 cent per unit, with each unit consisting of one common share and one half of one common share purchase warrant.
- Flow-through units priced at 30 cents per unit. Each unit will consist of one common share that will quality as flow-through shares, and one half of one warrant.
- Flow-through units to be sold to charitable purchasers for 35 cents per unit. Each Charity flow-through unit will consist of one common share and will qualify as “flow-through shares.’’
Each warrant will entitle the holder to purchase one common share at an exercise price of 40 cents at any time up to 24 months from the closing date of the offering.
The agents have been granted an over-allotment option to increase the size of the offering by 15% of the total offered securities. That option is exercisable at any time for up to 30 days after closing.
Gross proceeds from the sale of the flow-through and charity flow-through units will be used to fund exploration expenses at Moss Lake.
Details of the offering were released after the close of trading on December 14, 2022, when Goldshore shares closed at 28.5 cents. The shares are currently trading in a 52-week range of 67 cents and 16 cents.
Goldshore is an emerging junior gold development company and owns the Moss Lake project. One of its key shareholders is Wesdome Gold Mines Ltd. [WDO-TSX], which holds a 27% interest in Goldshore.
The company recently results for five holes that have infilled areas of the Main Zone that are between sections drilled by historic holes with collar survey problems. As a result, they will replace the low-confidence historic holes in the upcoming resource model update.
Drilling highlights include 192.75 metres at 1.02 g/t gold from a depth of 94.45 metres in MMD-22-051, including 62 metres at 1.49 g/t gold from 113 metres and 48.7 metres of 1.29 g/t gold from 208.3 metres.
The Moss Lake project is located approximately 100 kilometres west of Thunder Bay, Ont. It covers 14,292 hectares and consists of 282 unpatented and patented mining claims. The project hosts a number of gold and base metal-rich deposits, including the Moss Lake deposit, the East Coldstream deposit, the historically producing North Coldstream Mine and Hamlin Zone, all of which occur over a mineralized trend exceeding 20 kilometres in length.
The Moss Lake Deposit is a shear-hosted disseminated-style gold deposit, which outcrops at surface. It has been drilled over a 2.5-kilometre-length and to depths of 300 metres with 376 holes completed between 1983 and 2017.