Gold Terra Resource Corp (TSX-V:YGT, OTCQX:YGTFF) announced a non-brokered private placement, aiming to raise up to $2.6 million through the issuance of 10 million common shares at $0.05 each and 30 million charity flow-through shares at $0.07 each.
Commitments from major shareholders, including Eric Sprott, have been received, the company said in a statement.
The funds raised from the issuance of non-flow-through shares will be allocated for working capital.
All of the proceeds from charity flow-through shares will go toward eligible Canadian exploration expenses as per the Income Tax Act, with plans to renounce these expenses to shareholders by December 31, 2024.
The proceeds will fund exploration at the Con Mine option property and the Northbelt property, particularly targeting the Campbell Shear zone.
The ongoing drill program at Con Mine is focused on expanding near-surface Indicated and Inferred resources, specifically in the high-grade Campbell Shear structure, which has historically produced 14 million ounces of gold.
Current drilling also targets zones below existing underground workings with potential for high-grade free-milling ore, Gold Terra believes.