OnGold raises $3.25 million, shares advance
ONGold Resources Ltd. [ONAU-TSXV] said it has raised $3.25 million from a non-brokered flow-through private placement offering, money that will be used to advance exploration at the company’s mining properties in Manitoba and Ontario.
Under the offering, the company issued just over 5.0 million common shares that qualify as flow-through shares for the purposes of the Income Tax Act (Canada) priced at 65 cents per flow through share.
ONGold shares advanced on the news, rising 3.17% or $0.02 to 65 cents. The shares trade in a 52-week range of $1.05 and 43.5 cents.
ONGold is a reporting issuer in British Columbia and Alberta, with significant exploration assets in Northern Ontario, highlighted by the TPK and October projects.
The company was in the news recently when it struck a deal to purchase a 100% interest in the Monument Bay and Domain gold projects in Manitoba from a unit of Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) and Agnico Eagle and Capella Minerals Ltd. [CMIL-TSXV] in the case of Domain.
Following closure on December 23, 2024, Agnico-Eagle owns a 15% stake in ONGold, a company that began trading on the TSX Venture Exchange in May, 2024 after completing the acquisition of Northern Superior Resources Inc.’s [SUP-TSXV, NSUPF-OTCQX] mining projects in Ontario.
Northern Superior currently holds 35.7 million common shares of ONGold, or 72.35% of the issued and outstanding shares.
ONGold said it entered into two separate agreements for Monument Bay and Domain. Under those agreements ONGold will acquire the Monument Bay and Domain projects for $250,000, of which $100,000 is payable under the Monument agreement and $150,000 under the Domain agreement. ONGold also agreed to pay 8.7 million common shares, worth $4.2 million or $0.485 per share, a move that leaves Agnico-Eagle with a 15% stake in the company.
In addition, Agnico-Eagle is entitled to up to $21.5 million in contingent milestone-based payments under the Monument Bay agreement, while Agnico and Capella will together be entitled to $500,000 in contingent milestone payments under the Domain Agreement.
The transactions are an important step in advancing ONGold’s strategy of becoming a leading junior explorer in the prolific Stull Lake Greenstone belt of Northern Canada, ONGold said in a press release.
Monument Bay is located in northeastern Manitoba, near the Ontario-Manitoba border and represents a district-scale exploration opportunity with significant gold and tungsten mineralization over a 40-kilometre strike length. Monument Bay is also and advanced stage exploration asset with over 232,000 metres drilled in more than 800 diamond core holes, while still having substantial exploration upside both within the known deposits and along under explored satellite zones