Talisker upsizes private placement financing to $14 million
Talisker Resources Ltd. [TSX-TSK, TSKFF-OTCQB] said it has increased the gross proceeds of a previously announced non-brokered private placement financing to $14 million. That’s up from an earlier target of $3.0 million.
Proceeds are earmarked for the company’s flagship Bralorne Gold Project in British Columbia.
The upsized offering consists of 28 million units priced at 50 cents per unit, each of which will consist of one common share and one half of one common share purchase warrant entitling the holder to acquire one common share at an exercise price of 75 cents until May 5, 2028. Subject to customary regulatory approvals, the financing is expected to close by June 6, 2025.
“This additional capital, mostly from our existing shareholders, will place Talisker in a strong financial position, allowing the company to fast-track critical development, drilling and production at a faster timeline than previously envisioned in our original bootstrap plan,’’ said Talisker CEO Terry Harbort.
“Combined with the all-time high gold market, we believe this will serve to derisk the company as we advance more rapidly to an increased sustained mining rate and finalize testing and implementation of ore sorting technology.’’
Talisker shares advanced on the news, rising 2.04% or $0.01 to 50 cents. The shares trade in a 52-week range of 70 cents and 30 cents.
Talisker’s flagship asset is the high-grade, fully permitted Bralorne Gold Project where the company is currently transitioning into underground production at the Mustang Mine.
The Bralorne mine complex was one of the highest-grade and longest producing gold mines in British Columbia. It operated for over 50 years. The complex consisted of three mines – Bralorne, Pioneer, and King – which produced 4.2 million ounces of gold at an average recovered grade of 17.7 g/t.
Production ceased in 1971 due to the low gold price at the time.
Bralorne is estimated to contain an indicated resource of 33,000 ounces of gold, and an inferred resource of 1.6 million ounces.
Talisker recently announced that through its 100%-owned subsidiary Bralorne Gold Mines Ltd., it has signed an ore purchase agreement with New Gold Inc. (NGD-TSX, NYSE American). As part of the agreement, New Gold will purchase up to 350,000 tonnes of material mined at Bralorne. That material will be processed at New Gold’s New Afton mine in British Columbia.
The agreement can be extended by mutual agreement by New Gold and Talisker.
Talisker’s other key asset is an 85% interest in the Spences Bridge Gold Belt and several other early-stage greenfield projects. The Spences Bridge asset covers 203,029 hectares in southern British Columbia.
Back on April 4, 2024, Talisker said it had signed a non-binding letter of intent to form a joint venture with Regeneration Enterprises Inc. to process the Ladner Gold Project tailings resource, which is owned by New Carolin Gold Corp., a unit of Talisker.