Toronto-based development-stage gold miner Troilus Gold Corp. (TSX: TLG) announced a private placement for up to $10 million Thursday, aiming to finance continued exploration and definition drilling at its flagship project in Quebec.
The non-brokered financing is split into separate offerings of common shares and flow-through shares, the latter of which will be issued in three tranches. The first tranche includes up to 2 million flow-through shares at $1.00 per share, the second includes 2.1 million flow-through shares at 81 cents each, and the third includes 2.3 million flow-through shares at 77 cents each.
Thorugh a deal announced in tandem, the company will issue 6.9 million common shares at 65 cents each. The full offering is expected to close Feb. 28.
The company says proceeds from the flow-through shares will be used to incur tax-incentivized exploration expenses, while the common share offering will be used toward drilling at its Troilus gold project, northeast of the Val-d’Or district of Quebec.
Troilus acquired the former Troilus Mine in 2017, and since then has been steadily increasing the deposit’s resource estimates through exploration. In the updated resource estimate filed in November, Troilus reported an indicated resource estimate of 159.1 megatonnes at an average grade of 0.92 gold-equivalent grams per tonne (g/t AuEq) for a total of 4.71 million gold-equivalent ounces, and an inferred 52.7 megatonnes at 1.04 g/t AuEq for a total of 1.76 million gold-equivalent ounces. The company says that since taking over the project, it has boosted the resource by 129%.
Troilus finished off 2019 with a short 2,500-metre drill program at the Southwest Zone of the deposit, defining a new area of mineralization and intersecting grades including 2.26 g/t AuEq over 24 metres, 1.02 g/t AuEq over 31.7 metres, and 2.51 g/t AuEq over 5 metres. Based on those results, it plans to undertake another 4,000 to 5,000 metres of drilling to confirm the consistency of the mineralization.
Troilus Gold is led by its CEO Justin Reid, a geologist and financier who started his career as a geological surveyor before becoming a senior mining analyst at Sprott/Cormack Securities, followed by a stint at Paladin Energy and later as president of Sulliden Gold Corporation before it was acquired by Rio Alto Mining in 2014.