Gold Terra Resource (TSXV YGT / WKN A2P0BS) is filling its coffers for the further development and exploration of the Con Mine Option property, where 5.1 million ounces of gold were historically produced at an average grade of 16 g/t gold. This makes the historical Con Mine one of the most profitable high-grade gold mines in Canada. Gold Terra is not only receiving further support from existing shareholders including Eric Sprott and Ingalls Snyder, but also a strong confirmation of its strategy to advance the project in the Northwest Territories towards potential production!
As CEO Gerald Panneton also announces, simultaneously with the private placement – amounting to CAD 2.4 million – Osisko Gold Royalties has decided to exercise the first tranche of its royalty option for a 2% NSR (Net Smelter Royalty) on Gold Terra’s property early, in exchange for a cash payment of CAD 2,000,000! This means that Osisko sees good chances of benefiting from future production from the project…
Financing of CAD 2.4 Million
The mentioned financing for the amount of CAD 2.4 million consists of ‘hard dollars’ and charitable flow-through shares. Gold Terra expects gross proceeds of CAD 1,000,000 from the issuance of 20,000,000 common shares at an issue price of CAD 0.05 per share and gross proceeds of CAD 1,400,000 from the issuance of 20,000,000 charitable flow-through shares (CFT shares) at an issue price of CAD 0.07 per CFT share.
In total, the company will receive CAD 4.4 million minus some finders’ fees when the financing closes on or around April 11.
Gold Terra CEO Panneton stated: “We are pleased to offer investors this opportunity to participate in this planned financing totaling CAD 2,400,000, and thank existing shareholders such as Eric Sprott, Ingalls Snyder, and many others for their continued support. Additionally, Osisko Gold Royalties’ decision to exercise its first 2% NSR early, concurrent with this financing, is a major validation of our strategy to advance our high-grade gold deposits in the Northwest Territories towards potential production. The proceeds raised will allow us to continue our drilling program on the Con Mine Option property. The former Con Mine produced 5.1 million ounces of gold at an average grade of 16 g/t and was historically one of the richest high-grade gold mines in Canada.”
With the current drilling program on the Con Mine property, Gold Terra aims to expand the existing indicated and inferred resource from 2022. The company is targeting the prolific Campbell Shear structure, which historically produced 14 million ounces of gold at an average grade of 16 to 22 g/t gold. The company intends to advance into the area below the existing underground workings, where it sees the potential to discover significant amounts of high-grade gold ore.
If successful, Gold Terra can access the excellent infrastructure on the Con Mine property in the future, including the Robertson Shaft, a water treatment plant, as well as warehouses and offices. In any case, the company should now have enough capital for a truly meaningful exploration and drilling program.
