TDG Gold welcomes 9.9% institutional investor
TDG Gold Corp. [TDG-TSXV] on Monday announced details of a private placement financing, while welcoming a new 9.9% institutional investor that it did not name.
The company said it has arranged a non-brokered private placement of up to 16.2 million common shares priced at 17 cents per share, generating proceeds of up to $2.75 million. TDG said it has received a firm commitment from a new institutional resource sector investor to acquire 11.6 million shares through the offering. It said the investor is expected to own approximately 9.9% of TDG’s issued and outstanding shares once the offering is complete.
TDG shares eased 5.0% or $0.01 to 19 cents in light trading volume Monday. The shares are currently trading in a 52-week range of 35.5 cents and $0.087.
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.
TDG said it intends to use proceeds of the latest financing to fund the cost of continuing exploration at the company’s projects, with particular focus on defining the potential of the high-grade Mets gold system and possible extensions. The company is evaluating the potential for a porphyry-style bulk-tonnage copper-gold system at Baker, while defining a significantly larger Greater Shasta-Newberry gold-silver system.
In a press release on June 21, 2023, TDG Gold said its 2023 exploration program aims to confirm the historical resource on TDG’s 100%-owned Mets mining lease, unlock the potential of Greater Shasta-Newberry, and execute regional programs across TDG’s gold-silver copper projects to develop a pipeline of drill targets.
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
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.