{kanada_flagge}Goldshore Resources Inc (TSXV: GSHR; OTC Markets: GSHRF; FWB: 8X00), led by Research Capital Corporation and Eventus Capital Corp, as co-lead agents and joint bookrunners, is launching a further private placement of up to CAD 5 million. The offering comprises conventional common shares at CAD0.17 with one full warrant at CAD0.25 and tax-advantaged flow-through shares at CAD0.195 with one-half warrant, also at CAD0.25. The term of the warrants is 24 months from closing.
{kanada_flagge}Goldshore Resources Inc (TSXV: GSHR; OTC Markets: GSHRF; FWB: 8X00), led by Research Capital Corporation and Eventus Capital Corp, as co-lead agents and joint bookrunners, is launching a further private placement of up to CAD 5 million. The offering comprises conventional common shares at CAD0.17 with one full warrant at CAD0.25 and tax-advantaged flow-through shares at CAD0.195 with one-half warrant, also at CAD0.25. The term of the warrants is 24 months from closing.
Goldshore will pay intermediaries a cash commission equal to 6% of the gross proceeds of the offering. In addition, the Agents will receive performance-based warrants to purchase common shares equal to 6% of the securities sold in the Offering, at a price of CAD0.17 and CAD0.195, respectively.
The Company intends to use the proceeds from the Offering as working capital and for future exploration work at its Moss Lake gold deposit in northwestern Ontario, Canada. The gross proceeds from the issuance of the FT Units will be used for “Canadian exploration expenditures” as defined in the Tax Act. The offering is expected to close on or about April 12, 2023
Goldshore owns the Ontario-based Moss Lake gold project with a resource of 4.2 million ounces of gold at last count, including a higher-grade shear zone with 2.2 million ounces at 2.0 g/t gold. Goldshore is deploying multiple drills in parallel on its 100,000 metre drill program and has already completed over 100 holes since August 2021 alone. The company is targeting the current drilling to confirm historical results while transitioning a larger portion of the resource from the inferred category to the higher indicated category. The company has already announced a new resource estimate for April this year. Goldshore then intends to use this as the basis for an initial Preliminary Economic Assessment (PEA) on Moss Lake. The subsequent feasibility study is planned for next year.
Figure 1: Goldshore’s Moss Lake project compared to the peer group.
Summary: Goldshore is a full-throttle company, led by a thoroughbred exploration team that has repeatedly demonstrated its ability. The scale (100,000m planned) and pace of exploration is not inconsequentially reminiscent of a gold producer’s approach – the difference being that Goldshore is paying for its high level of activity entirely with equity. So far, the market has not rewarded Goldshore’s efforts, even though the project is already one of the top six new open-pit gold projects in Canada at 4.2 million ounces and an updated resource estimate is due shortly. The five other projects in the peer group include Kirkland Lake (Detour Lake), New Gold (Rainy River), IAMGOLD (Côté Lake), Agnico Eagle/Yamana (Canadian Malartic), Argonaut (Magino) as well as, Equinox/Orion (Greenstone). Just recently, analysts at Laurentian Bank Securities assigned Goldshore Resources a “speculative buy” rating and a $2.00 price target. Wesdome Gold Mines Ltd. is currently a large shareholder in Goldshore with an approximate 22% equity position in the company. The upcoming new resource estimate along with the PEA should finally bring the project’s outstanding quality to the attention of a broader group of investors.
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