Scorpio Gold raising $8.0 million with orders from Beaty, Sprott
Scorpio Gold Corp. [SGN-TSXV] has announced details of a non-brokered private placement financing that is expected to raise gross proceeds of $8.0 million from the sale of 32 million common shares priced at 25 cents each.
On Friday, Scorpio shares advanced on the news, jumping 11.9% or $0.04 to 37.5 cents. The shares trade in a 52-week range of 34 cents and $0.08.
The offering consists of sole orders from Ross Beaty, who has committed to subscribe for $5.0 million and Eric Sprott, who has committed to subscribe for $3.0 million. Both Beaty and Sprott are well known Canadian mining financiers.
The company said it intends to use the net proceeds from the offering to advance exploration and development activities at Scorpio’s flagship Manhattan District Project in Nevada.
The offering is expected to close by September 2, 2025, subject to customary approvals from the TSX Venture Exchange.
Scorpio holds a 100% interest in the past-producing Manhattan district mine, which is located in the Walker Lane trend in Nevada. The Manhattan district covers about 4,780 hectares and consists of the advanced exploration stage Goldwedge mine, with a 400-ton-per day gravity mill and four past producing pits that were acquired from Kinross Gold Corp. (K-TSX, KGC-NYSE) in 2021.
“The Manhattan district represents an exciting late-stage exploration opportunity, with over 100,000 metres of historic drilling, significant resource potential, and valuable permitting and water rights,” the company has said.
Last year, the company said it made significant progress at the Manhattan District, including a doubling of the land position, and encouraging drill results. The key highlight from drilling in 2024 is 1.69 g/t over 55.7 metres, an undercut of the Goldwedge underground, with the goal of one open pit resource between the historic Goldwedge and Manhattan mines. Concurrent to drilling, Scorpio compiled a historic database covering the entire Manhattan District.
In a press release on August 25, 2025, Scorpio announced the results from Phase One of its 2025 drilling program at Manhattan Distric, including initial results from holes 25MN-011 and 25MN-012. 25MN-011 returned 1.24 g/t over 92.81 metres, including 19.01 g/t over 3.05 metres. “These significant results confirm the mineralization in the previously undrilled 200-metre long Gap Zone, which connects the historic West Pit, to the permitted, previously operating, Goldwedge underground mine. The company plans to release an initial resource estimate soon.
Scorpio was in the news last year when it agreed to amalgamate with Altus Gold Corp., a private company with an option to acquire a mineral exploration property in Esmeralda County, Nev. Known as the Northstar property, it lies adjacent to the Mineral Ridge Mine (also in Nevada), which Scorpio recently sold to an arm’s length third party for US$7.5 million. Of that amount US$5.0 million has been advanced by the purchaser, a further US$1.0 million has been paid into escrow, a further US$1.0 million is to be paid on August 25, 2026.