Newcore announces upsized $15 million bought deal

Newcore Gold Ltd. [NCAU-TSXV, NCAUF-OTCQX] has announced details of an upsized $15 million bought deal financing, saying it plans to use the proceeds for exploration and development of its Enchi Gold Project in Ghana.

Newcore was originally planning to raise $10 million. But the company now says the underwriters have pledged to increase the size of the offering to 28.3 million common shares priced at 53 cents per share. The offering is expected to close by May 28, 2025.

Newcore shares were active on the news, easing 8.6% or $0.05 to 53 cents. The shares trade in a 52-week range of 92 cents and 54 cents.

The 248-square kilometres Enchi land package covers 40 kilometres of Ghana’s prolific Bibiani Shear Zone, gold belt which hosts several 5.0-million-ounce gold deposits, including Asante Gold Corp.’s [ASE-TSV, ASGOF-US OTC, ASG-GSE, 1A9-Frankfurt] Chirano mine, which is located 50 kilometres to the north.

Enchi is situated on the same regional structure as Chirano with comparable geology, alteration and mineralization. The Chirano zones are similar to those found at Enchi, including known zones Sewum, Boin, Nyam and Kwakyekrom. Like Chirano, the zones at Enchi have broad lower grade gold at surface with higher grade core structure extending to depth.

Newcore recently announced an updated resource estimate for the Enchi project, which is estimated to host 83.6 million tonnes at an average grade of 0.56 g/t gold, containing 1.5 million ounces of gold in the indicated category. On top of that is an inferred resource of 40.1 million tonnes at an average grade of 0.49 g/t gold containing 626,000 ounces of gold. The updated resource is reported using a constraining resource pit at a gold price of US$3,200 an ounce and has an effective date of October 6, 2025. Since that date, approximately 12,500 metres of additional drilling has been completed on the project, which is not included in the latest resource estimate. The indicated mineral resource will form the basis for a pre-feasibility study which is underway and is targeted for completion by the end of June 2026.

The latest estimate incorporates only 28,000 metres of drilling completed in 2024 and 2025 as part of an ongoing drill program.

The average depth of the resource pits is only 85 metres, with most drilling to date only testing shallow mineralization down to an average depth of 125 metres, and limited drilling completed to a depth of 200 to 350 metres.

The company has said future growth potential exists across the district scale land package at Enchi, with more than 25 targets identified across the 248 square kilometre land package. Drilling is focused on demonstrating and defining the opportunity for resource expansion in the high-grade shoots within fresh mineralization to depth.