Troilus raises C$22M in upsized offering
A worker in the core shack at the Troilus gold project Credit: Troilus
Troilus Gold has announced an upsized bought deal of C$22 million (up from C$15 million originally) as equity raises in the mining space continue.
The company entered into an agreement where Cormark Securities, Laurentian Bank Securities and Stifel GMP are co-lead underwriters for a syndicate purchasing 21 million units of the company on a bought-deal basis at C$1.05 each.
A unit consists of a share and half of a warrant.
The underwriters also have the option to sell up to an additional 3.2 million units for up to 30 days following closing, which is expected around Jun. 23. If this over-allotment option is exercised in full, the gross proceeds to the company would be C$25.4 million.
Net proceeds are intended for engineering work for the Troilus deposit, as well as for geotechnical, infill and exploration drilling at the site and for working capital and corporate purposes.
Troilus holds the 834-sq.-km Troilus property northeast of Val-d'Or in Quebec, which is within the Frotet-Evans greenstone belt. The site features the past-producing Troilus gold and copper mine, which churned out over 2 million oz. of gold and almost 70,000 tonnes of copper between 1996 and 2010.
In November of last year, the company published an updated resource for the project, with total indicated pit constrained and underground resources of 159.1 million tonnes grading 0.78 g/t gold and 0.09% copper for a total of 4.7 gold-equivalent oz. and additional inferred resources of 52.7 million tonnes at 0.9 g/t gold and 0.08% copper for 1.8 million gold-equivalent oz.
The company's holdings cover a 20-km-long magnetic low trend, with additional areas outlined as targets for near-term resource growth. Most recently, the company has been drilling the Southwest zone, 3.5 km northeast of the current deposit, which was discovered in January.
Troilus' stock was trading down 9.7% at Tuesday's close on the TSE. The company has a C$90 million market capitalization.
(This article first appeared in the Canadian Mining Journal)