Sitka Gold Announces $10 Million Bought Deal Financing
Sitka Gold Corp. [SIG-TSXV, OTCQB-SITKF, 1RF-FSE] has arranged a $10 million bought deal financing with proceeds earmarked for the company’s RC Gold Project in the Yukon Territory, Canada.
The company said an underwriting syndicate has agreed to purchase, on bought deal private placement basis, 14.7 million common shares that will qualify as “flow-through shares” within the meaning of the Income Tax Act of Canada at a price of 68 cents per flow-through share.
Sitka is a diversified company that is advancing new gold discoveries in Nevada and the Yukon.
The company’s flagship asset is the RC Gold project, which is located 100 kilometres east of Dawson City, Yukon, in the Tombstone Gold Belt, a region that includes Banyan Gold Co.’s (BYN-TSXV) Aurmac project, and Snowline Gold Corp.’s [SGD-CSE, SNWGF-OTCQB] Valley discovery.
The company was recently placing 90% of its effort into the RC project, where the company is working to add significantly more ounces of gold to a pit constrained resource in two near surface/on surface zones known as Blackjack and Eiger.
In January, 2025, the company announced an updated mineral resource estimate for the Blackjack Zone of 1.3 million ounces in the indicated category and 1.04 million ounces in the inferred category. The Eiger Zone hosts a pit constrained inferred mineral resource of 27.4 million tonnes averaging 0.5 g/t at a cut-off grade of 0.25 g/t (440,000 ounces).
The company is also advancing the Alpha Gold Project in Nevada and currently has drill permits for its Burro Creek Gold and Silver Project in Arizona and the Coppermine River Project in Nunavut.
“This financing, which brings in funds at a significant premium to market, comes amid increased interest in our flagship RC Gold Project following the successful start to our planned 30,000-metre drill program this year,’’ said Sitka CEO and Director Cor Coe. “Combined with our already strong treasury of over $14 million, this financing provides long term funding and the ability to ramp up efforts to further, advance RC Gold as we push to unlock additional value from this exciting gold discovery.’’
In a press release on March 18, 2025, Sitka said it had completed the first diamond drill hole of the 30,000-metre program. It said hole 75, one of the deepest holes ever drilled at the Blackjack zone, went to a length fo 715.97 metres to test both the lateral and vertical extent of the high-grade gold mineralization that was discovered in Hole 68 which was the best drill hole completed at Blackjack to date. The company said visible gold was observed over 130 times in Hole 75 and an initial review of the drill hole suggests strong gold mineralization extends at least 70 metres to the northeast from Hole 68, which intersected 678.1 metres of 1.04 g/t gold, including 93 metres grading 2.57 g/t gold starting at 589.5 metres.
On Wednesday, Sitka Gold shares eased 1.9% or $0.01 to 51 cents. The shares trade in a 52-week range of 57 cents and 13 cents.