GoGold upsizes bought deal to C$25m
GoGold Resources has announced an upsized bought deal of C$25 million, from C$15 million previously, co-led by Sprott Capital Partners and PI Financial. The offering is for 35.7 million units, each composed of one common share and one-half of a warrant.
Proceeds are intended for exploration at the Los Ricos project in Jalisco state as well as for corporate purposes. Closing is expected around Feb. 25.
In January, the company released diamond drill results from Los Ricos with highlight intercepts of 18.9 metres of 8.63 g/t gold-equivalent as well as 22.7 metres of 1.49 g/t gold-equivalent. This 18.9 metre-long intercept is from a hole testing the strike extension of the Los Ricos vein which intersected a potential new ore shoot 65 metres past a historical mining area.
The 220-sq.-km Los Ricos project features extensive historic underground development with epithermal mineralization. In March, GoGold entered into an option agreement to acquire up to a 100% interest in the property. Last year, the company completed 17,400 metres of diamond drilling at the site, mostly around historic mining areas.
In addition, GoGold operates the Parral tailings project in Chihuahua state which features two tailings sites with one currently producing silver.
(This article first appeared in the Canadian Mining Journal)