TDG Gold raising $15.5 million from upsized placement
TDG Gold Corp. [TDG-TSXV] has upsized a non-brokered private placement that was previously announced on January 27, 2025, and is now expected to raise $15.5 million, up from the earlier target of $14.5 million.
TDG is a major mineral tenure holder in the historical Toodoggone Production Corridor of north-central British Columbia, with over 32,000 hectares of brownfield and greenfield opportunities under direct ownership.
The portfolio includes the former producing, high-grade gold silver Shasta and Baker mines, which produced intermittently between 1981 and 2012.
The company said it intends to use the proceeds of the offering for continued exploration on TDG’s mineral properties in British Columbia, with the principal focus on the Greater-Newberry project and Baker Complex, and the historical high-grade gold Mets development prospect, all of which are road accessible, and combined have over 65,000 metres of historical drilling.
Under the terms of the offering, up to 8.0 million non-flow-through shares of the company will be issued at a price of 50 cents per non-flow through share, for gross proceeds of $4.0 million.
The terms of the 14 million charity flow-through shares to be issued at a purchase price of 82.5 cents per Charity FT share for gross proceeds of $11.5 million remain unchanged. Skeena Resources Ltd. [SKE-TSX] is the back-end purchaser of the 14 million Charity FT shares. Skeena will acquire the Charity FT shares from the original subscribers at a purchase price of 50 cents per Charity FT share.
On Tuesday, TDG shares were unchanged at 47 cents and trade in a 52-week range of 59 cents and $0.085.
On January 8, 2025, TDG published a updated mineral resource estimate for the Shasta project, incorporating the results of its relogging, resampling and assay program of 2007 to 2010 historical diamond drill holes, comprising 3,250 metres at the Shasta mine. The updated estimate also incorporates its 2024 drill program at the Tailings Storage Facility located adjacent to the Baker mill.
The company said the key outcomes of the updated estimate are improved grades, and a significant reduction in the estimated quantity of waste rock within the conceptual mineral resource limiting pit.
According to the updated estimate, the indicated resource stands a 515,800 ounces of gold equivalent (AuEq), grading 1.35 g/t AuEq, contained within 11.9 million tonnes. On top of that is an inferred resource of 505,500 ounces of AuEq, grading 1.04 g/t AuEq, contained within 15.14 million tonnes, and including 12,120 ounces of AuEq grading 1.37 g/t AuEq contained within the Tailings Storage Facility. The Shasta deposit remains open at depth.
The updated estimate does not include any of the Greater Shasta-Newberry satellite exploration target zones or any of the second Tailings Storage Facility, which is adjacent to the second tailings facility.