Spanish Mountain Gold Ltd (TSX-V:SPA, OTC:SPAZF) said its planned fundraising has increased by C$1 million to C$6 million, thanks to strong investor demand.
The Vancouver-based miner is offering a mix of ordinary shares and flow-through shares, a Canadian tax incentive vehicle that allows investors to claim exploration expenses as deductions, making these shares particularly attractive.
The private placement consists of up to 20.7 million units priced at C$0.145 each, plus flow-through shares priced between C$0.165 and C$0.20 for charitable purchasers.
Each unit includes one common share and a warrant giving investors the right to buy additional shares at C$0.22 within three years. Red Cloud Securities is leading the deal.
Spanish Mountain plans to use the proceeds to advance its 100%-owned Spanish Mountain Gold Project in British Columbia’s Cariboo Gold Corridor, a region with a strong mining history.
The funds will support exploration and development work, along with general corporate needs.
The company recently released an updated preliminary economic assessment (PEA), expected to be followed within 45 days by a new technical report under Canada’s NI 43-101 standards.
This report will provide a clearer, more executable plan for the project, including an updated mineral resource estimate. Spanish Mountain aims to make a final construction decision by 2027.
Importantly, Spanish Mountain is positioning itself as a leader in sustainable mining, aiming to develop Canada’s “greenest” gold mine by focusing on technology, safety, and strong community and Indigenous relations.
The offering is expected to close around August 27, pending regulatory approvals. Flow-through shares sold under the offering come with a four-month resale restriction period, standard in Canadian securities law.