Probe Gold closes $45 million private placement to advance projects in Quebec
Probe Gold Inc. [TSX: PRB; OTCQB: PROBF] has closed its previously announced upsized bought-deal private placement. The offering was completed through a syndicate of underwriters led by Canaccord Genuity Corp., Beacon Securities Ltd. and Scotiabank, and including BMO Capital Markets, CIBC World Markets and Desjardins Securities Inc. for aggregate gross proceeds of $45,275,000.
The offering consisted of 6.25 million common shares of the company that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec)) at a price of $3.24 per flow-through share for gross proceeds of $20.25-million, and 13.75 million common shares of the company at a price of $1.82 per common share for gross proceeds of $25,025,000.
The company will use an amount equal to gross proceeds from the sale of the flow-through shares to incur eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) and, in respect of Quebec resident subscribers who are eligible individuals, will qualify for inclusion in the exploration base relating to certain Quebec surface mining exploration expenses and the exploration base relating to certain Quebec exploration expenses of the company, as such terms are defined in the Taxation Act (Quebec), in relation to the company’s properties located in Quebec, Canada, by December 31, 2026. All qualifying expenditures will be renounced in favour of the subscribers effective December 31, 2025.
The company plans to use proceeds of the offering to advance its Novador gold project and explore its Quebec properties as well as for working capital. The offered securities issued under the offering are subject to a four-month hold period under applicable Canadian securities laws.
Probe Gold is well financed and dedicated to exploring and developing high-quality gold projects. Notably, it owns 100% of its flagship asset, the multimillion-ounce Novador gold project, Quebec, as well as an early-stage Detour Gold Quebec project.
Probe controls a large land package of approximately 1,835 km2 of exploration ground within some of the most prolific gold belts in Quebec. The company’s recent Novador updated preliminary economic assessment outlines a robust mining plan with an average annual gold production of 255,000 ounces over a 12.6-year mine life.
Val d’Or properties include gold resources totalling 6,728,600 ounces in the measured and indicated category, and 3,277,100 ounces in the inferred category along all trends and deposits.