Canagold Resources Ltd (TSX:CCM, OTCQB:CRCUF) has closed a C$4 million financing through a mix of flow-through and common share issuances to advance its New Polaris gold project in British Columbia.
The company sold 4.65 million charity flow-through shares at C$0.43 each for gross proceeds of C$2 million, alongside 5.13 million common shares priced at C$0.39, also raising C$2 million. A total of 9.78 million shares were issued under the private placement.
Proceeds from the flow-through shares will be used for eligible Canadian exploration expenses at New Polaris, while funds from the common share issuance will support working capital, Canagold said.
Sun Valley Investments AG acquired about 1.86 million flow-through and 2.05 million common shares, while its affiliate Goldlogic Corp purchased 465,116 flow-through and 512,821 common shares. A third investor acquired the balance.
Following the deal, Sun Valley and Goldlogic together own roughly 48.25% of Canagold’s outstanding shares, up slightly from 48.16% before the offering.
Vancouver-based Canagold is focused on advancing its New Polaris gold project through feasibility and permitting while seeking additional growth opportunities through acquisitions.
In July, Canagold released results of a feasibility study for New Polaris that outlined an after-tax net present value of C$425 million and an internal rate of return of 30.9% at a base case gold price of $2,500 per ounce. At a spot price of $3,300, the NPV rises to C$793 million with a 47.3% IRR.
The study projected pre-production capital costs of C$250 million, with payback expected in 2.4 years at the base case price and 1.7 years at spot pricing. Life-of-mine after-tax free cash flow was estimated at C$649 million at $2,500 gold and C$1.1 billion at $3,300.
The high-grade underground mine is expected to produce 805,589 ounces of recovered gold over an 8.3-year mine life at an average diluted grade of 9.94 grams per tonne.