Precore Gold closes $6.0 million private placement financing
Precore Gold Corp. [PRCG-CSE] has raised $6.0 million from a non-brokered private placement financing. The company is focused on its flagship properties, the Arikepay property in Arequipa, Peru, and the Lac Big-Rush property in Chibougamau, Quebec.
The company said proceeds of the offering, which consisted of 30 million units priced at 20 cents per unit, are expected to be used to fund exploration work and for general working capital purposes.
Under the terms of the offering, each unit consists of one common share of the company, and one half of one common share purchase warrant. Each warrant entitles the holder to acquire one additional common share at an exercise price of 28 cents until September 3, 2028. However, the company can accelerate the expiry of the warrants to a day that is 30 days following the date at which the company’s common shares trade at a 30-day volume weighted average trading price exceeding 70 cents.
Precore shares were unchanged Thursday at 23 cents and trade in a 52-week range of 23 cents and 22 cents.
Argonaut Resources Pty Ltd., which is part of Australia’s Argonaut Ltd., and its clients participated as a cornerstone investor in the offering for an aggregate $4.0 million. In connection with the offering, the company paid Argonaut a cash fee equal to 6.0% of the gross proceeds received from subscribers sourced by Argonaut (being $240,000) and 1.2 million share purchase warrants equal to 6.0% of the number of common shares issued in connection with the subscribers sourced by Argonaut, with each finder warrant entitling the holder to purchase one common share at an exercise price of 28 cents for 24 months after closing. That option expires on September 3, 2028.
The company said Argonaut has raised approximately A$3.6 billion in natural resource financing in the last 12 months.
Certain directors and officers of the company subscribed for an aggregate 670,000 units, generating proceeds of $134,000. The Arikepay property is located 40 kilometres from the Pacific Ocean in the coastal region of the Arequipa department in southern Peru. It covers an area of 1,800 hectares at an average elevation of 1,200 metres above sea level. The project is also located about 45 kilometres south of the Cerro Verde copper-molybdenum porphyry deposit, one of Peru’s largest mines with over 3.0 billion tonnes of ore and owned by Freeport-McMoRan Inc. [FCX-NYSE], SMM Cerro Verde Netherlands and Buenaventura. In April 2025, Precore struck a definitive deal with Alta Copper Corp. to acquire a 100% stake in the Arikepqy gold-copper property.
“An in-house technical review by our geologist suggests that the Arikepay project has the potential to host a significant gold resource,’’ said Rob Telford, Director of Equity Capital Markets at Argonaut.
Precore has said the Lac Big-Rush property presents interesting gold discovery upside given its proximity to Iamgold Corp.’s [IMG-TSX, IAG-NYSE] Nelligan Mining Complex, one of the largest pre-production gold camps in Canada with measured and indicated resource of 3.75 million ounces of gold.
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