Spanish Mountain upsizes financing target to $6.0 million
Spanish Mountain Gold Ltd. [SPA-TSXV, S3Y-FSE] said it has increased the expected maximum aggregate proceeds of a previously announced brokered private placement to $6.0 million, up from the earlier $5.0 million target.
The company said net proceeds are earmarked for exploration and development work at its 100%-owned Spanish Mountain Gold Project in the Cariboo Gold Corridor of British Columbia. In a July 3, 2025, the company announced the results of a preliminary economic assessment (PEA), including an updated mineral resource estimate. It envisions a conventional open pit mining and milling operation with a projected life-span of 24.5 years.
The revised offering will consist of up to 20.7 million units priced at 14.5 cents per unit, for gross proceeds of up to $3.0 million from the sale of units, as well as gross proceeds of up to $3.0 million from the sale of any combination of (i) flow-through share units (the FT units) priced at 16.5 cents, and (ii) flow-through share units to be sold to charitable purchasers (each a Charity FT Unit) at a price of 20 cents per Charity FT unit.
Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share for 22 cents per warrant share for 36 months from closing, which is expected to occur on August 27, 2025. Each FT unit will consist of one common share to be issued as a “flow-through share, and one half of one common share purchase warrant. Each FT Unit warrant will entitle the holder to acquire one additional common share to be issued on a non-flow-through basis at a price of 22 cents per FT unit warrant share for 36 months from the closing date. Each Charity FT unit will consist of one FT share and one warrant.
The company said it will grant the lead agent an option to sell up to an additional $1.2 million of gross proceeds in any combination of the offered securities.
The shares were unchanged Monday at 13.5 cents and trade in a 52-week range of 20.5 cents and $0.085.
Spanish Mountain is focused on advancing its Spanish Mountain Gold Project towards construction of the next gold mine in the Cariboo Corridor.
The company has said the PEA is a conceptual study of the potential economic viability of the Main Deposit Mineral Resource, that includes the Main Zone and North Zone. It said the PEA supercedes an earlier PEA released on May 31, 2021.
With over 235,000 metres of drill information, our confidence in the resource quality and proposed mine confirm our strategy to advance the project towards feasibility and ultimately a build decision by 2027, the company has said.
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