Onyx Gold raising $8.0 million for Ontario and Yukon projects
Onyx Gold Corp. [ONYX-TSXV, ONXGF-OTCQX] has announced details of a bought deal private placement of five million common shares that qualify as flow-through shares, priced at $1.0 each, generating gross proceeds of $5.0 million.
Concurrent with the offering, the company intends to complete a non-brokered private placement with a strategic investor, a large international gold mining company, of 3.49 million common shares priced at 85 cents per share, for gross proceeds of $3.0 million. The company said it expects aggregate proceeds of $8.0 million between both the offering and the concurrent private placement.
The $3.0 million non-flow-through share placement by the strategic investor is anticipated to bring the investor’s total holdings to 9.9% of the company’s issued and outstanding shares. On Thursday, the shares eased 3.9% or $0.03 to 74 cents. The shares currently trade in a 52-week range of 94 cents and 15.5 cents.
Onyx Gold is an exploration company with a focus on established Canadian jurisdictions, including Timmins, Ont., and Yukon territory. The company’s extensive portfolio of gold projects in the greater Timmins gold camp includes the Munro-Croesus gold property, which is renowned for its high-grade mineralization, plus two additional earlier stage large exploration properties, Golden Mile and Timmins South.
The company said it will use proceeds from the sale of the flow-through shares to incur Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures related to the company’s projects in Ontario and the Yukon.
Net proceeds of the concurrent private placement will be used by the company for exploration at its mineral properties and general corporate purposes.
In a press release on April 10, 2025, Onyx announced new high grade drill results from hole MC24-163 at the Argus North Zone, a newly identified gold zone located 100 metres north of the main Argus Trend at its 100%-owned Munro-Croesus Project, 75 kilometre east of Timmins, Ont. a newly identified gold zone. In addition, the company said it has signed an option agreement to acquire a 100% interest in a key 21-hectare inholding property, contiguous with the Argus North discovery. Ths acquisition strengthens Onyx Gold’s land position and enhance its ability to expand this promising new zone.
The company said the extension of drill hole MC24-163 onto the newly optioned property has significantly expanded and improved upon the previously reported intersections (1.9 grams per tonne gold over 48.1 metres in drill hole MC24-163. The new results now define a broad continuous zone of strong gold mineralization, grading 3.4 g/t gold over 69.6 metres, including a high-grade subzone of 13.9 g/t gold over 9.5 metres. This new zone has been tested by only a single drill hole to date, and it remains open in all directions, offering substantial potential for further expansion.