Troilus Gold (TSE: TLG) announced on Thursday an upsized non-brokered private placement with gross proceeds expected at up to C$12.8 million, up from C$10 million previously.
The placement features a common share offering component of up to 11.3 million common shares, at C$0.65 each, for gross proceeds of up to C$7.3 million. The flow-through portion includes the issue of up to 6.45 million flow-through shares, in three tiers, for gross proceeds of up to C$5.5 million.
Closing is expected on February 28.
“This year we will be engaged in ongoing exploration of the property which we believe has the potential to add to the current estimated mineral resources and a shift to engineering activity, based on which we expect to deliver a pre-feasibility study later this year,” Justin Reid, the company’s CEO said in a press release.
Current indicated resources at the Troilus gold project stand at 159.1 million tonnes grading 0.92 g/t gold-equivalent for a total of 4.71 million gold-equivalent oz. with additional inferred resources of 52.7 million tonnes at 1.04 g/t gold-equivalent for a total of 1.76 million oz.
At market close Thursday, Trolius Gold’s shares were up over 4%. Trading volume was over 357,000, more than double the daily average. The company has a C$48.2 million market capitalization.
(A version of this article first appeared in the Canadian Mining Journal)