TDG Gold raising $6.5 million for B.C. projects
TDG Gold Corp. [TDG-TSXV] said it is aiming to raise $6.5 million from an offering of charity flow-through units and flow-through shares with proceeds earmarked for the company’s mineral properties in British Columbia.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central B.C. with over 23,000 hectares of brownfield and greenfield exploration assets under ownership or earn-in agreements.
Its flagship assets are the former high-grade gold-silver Shasta, Mets and Baker mines, which produced intermittently between 1981 and 2012 and have over 65,000 metres of historical drilling.
According to a National Instrument 43-101-compliant mineral resource estimate, the 100%-owned former Shasta gold-silver project hosts an inferred resource of 709,200 ounces of gold equivalent (AuEq) at 1.00 g/t or (0.79 g/t gold and 26.7 g/t silver). The company said the estimated resource is amenable to open pit mining and is restricted to the central zone of the Shasta deposit
On Thursday, TDG shares eased 8.8% or $0.03 to 32 cents in light trading volume after the company released details of the financing plan. The shares are currently trading in a 52-week range of 52 cents and $0.087.
TDG said it has struck a deal with a syndicate of agents who have pledged to offer up to 11.1 Charity Flow-through units priced at 45 cents per unit, as well as 3.3 million hard dollar units for 30 cents each, as well as up to 1.43 million flow-through shares at 35 cents per share. Total proceeds are expected to be $6.5 million.
Each Charity Flow-through unit will consist of one flow-through common share and one-half of one non-flow-through common share purchase warrant. Each Charity Warrant will entitle the holder to acquire one common share for an exercise price of 42 cents per share for up to three years after the offering is completed.
Each hard dollar unit will consist of one non-flow-through common share and one half of a non-flow through common share purchase warrant. Each full hard dollar warrant will entitle the holder to acquire one common share for an exercise price of 42 cents for three years after the offering closes.
However, the agents have been granted over-allotment options that could raise the total proceeds to $6.72 million. That option remains open for up to 48 hours prior to the closing date.
TDG recently outlined a large multi-element geochemical and geophysical anomaly (the Newberry prospect) associated with moderate to intense alteration north west and along strike from the Greater Shasta exploration target zone.
“Following on from the successful 2022 program, our proposed 2023 field program balances the discovery potential of the Greater Shasta-Newberry target area with continued advancement of the Shasta deposit,’’ TDG’s Vice-President Exploration Steven Kramar said recently.
“Our aim is to build upon our knowledge – including updated geological, structural, lithological and geochemical models – to determine the potential scale of the Greater Shasta-Newberry target area as a whole,” he said.