Sitka Gold Corp. (TSXV: SIG); Frankfurt: 1RF) has successfully completed its previously announced capital raise, generating gross proceeds of approximately C$28.55 million. The financing, consisting of a brokered “bought-deal” placement and a parallel non-brokered private placement, is intended to enable the company to further advance exploration work on its 100% owned RC Gold Project in Canada’s Yukon Territory.
Comprehensive Flow-Through Financing Completed
The brokered placement involved the sale of a total of 16.24 million so-called charity flow-through shares at a price of C$1.54 per share, raising C$25 million. Concurrently, a non-brokered private placement of an additional 2.3 million shares was conducted under the same terms, raising an additional C$3.55 million. Together, both transactions resulted in total gross proceeds of C$28.55 million.
The charity flow-through structure allows investors to claim certain tax benefits related to exploration expenditures. Sitka Gold commits to investing the entire proceeds from the flow-through issuances into so-called “qualified Canadian exploration expenditures,” which are recognized as “Flow-Through Mining Expenditures” under the Canadian Income Tax Act. These expenditures are to be allocated to the RC Gold Project in Yukon by the end of 2026 at the latest and will be tax-credited to investors effective December 31, 2025.
The brokered placement was led by Beacon Securities Limited as Lead Manager, together with Cormark Securities Inc., Agentis Capital Markets, Canaccord Genuity Corp., BMO Capital Markets, Paradigm Capital Inc., and Desjardins Capital Markets.
Terms and Use of Proceeds
Of the flow-through shares issued under the financing, 12.99 million were offered under the so-called “Listed Issuer Financing Exemption” pursuant to National Instrument 45-106. These shares are not subject to any statutory hold period and are immediately tradable. The remaining shares from the brokered placement, as well as all shares issued under the non-brokered transaction, are subject to a four-month hold period from the closing date.
As compensation for their services, the participating agents received a commission of C$1.5 million and 974,000 options, which can be converted into common shares of Sitka Gold at a price of C$1.54 within 24 months. No additional agent fees were paid for the non-brokered placement.
The capital raised will be specifically invested in the further exploration and technical development of the RC Gold Project. This project, located in the so-called Tombstone Gold Belt, is one of the largest contiguous exploration areas in Yukon, covering 431 square kilometers.
Additional Flow-Through Financing Planned
In addition to the completed transaction, Sitka Gold announced its intention to conduct another smaller financing round for 1.5 million additional flow-through shares at a price of C$1.37 per share. This measure, referred to as a “Traditional Flow-Through Offering,” targets existing strategic investors and is expected to raise an additional C$2.05 million. These funds will also be earmarked for exploration expenditures in Yukon and utilized by the end of 2026.
All shares issued under this additional placement will be subject to a hold period of four months and one day. The closing is subject to the approval of the TSX Venture Exchange and the relevant regulatory authorities.
Sitka Gold: Strong Capital Base and Growing Exploration Portfolio
With the completion of the current financing round, Sitka Gold has a comfortable liquidity position. The company stated that it now has over C$43 million in liquid assets and no debt. This positions Sitka well to promptly implement its ongoing and planned exploration programs.
In addition to the RC Gold Project in Yukon, the company is also advancing several other 100% controlled projects in North America. These include the Alpha Gold Project in Nevada, the Burro Creek Gold-Silver Project in Arizona, and the Coppermine River Project in Nunavut. All projects target gold, silver, and copper mineralization, with a clear focus on expanding the RC Gold Project as the primary value driver.
The RC Gold Project is located in an area that is geologically part of the Tombstone Gold Belt – a region that already hosts several significant gold deposits. Sitka is focusing there on expanding its known gold zones as well as on new target areas identified through previous drilling and geophysical surveys.
Outlook
With the successful completion of the C$28.5 million financing, Sitka Gold has laid the groundwork to significantly expand its exploration program in Yukon in the coming years. The focus is now on drilling campaigns and geological analyses to further define the resource base of the RC Gold Project and prepare for the next development phase.
