Gold Terra Resource Corp., headquartered in Vancouver, BC, has successfully closed the first tranche of a non-brokered private placement, generating gross proceeds of C$10.8 million. This milestone follows the company’s announcement of the financing plans, which aims to bolster its exploration activities.
The first tranche saw the issuance of 8,612,223 common shares valued at C$0.18 each, yielding approximately C$1.55 million. Additionally, the placement included 20 million charity flow-through shares at C$0.25 each, contributing C$5 million, and 10 million flow-through shares priced at C$0.22 each, totaling C$2.2 million.
The offering has garnered significant interest, notably from strategic investor David Harquail and the Mackenzie Fund, reflecting strong confidence among shareholders in Gold Terra’s strategic direction. The company plans to utilize the raised capital for funding two concurrent drilling programs.
Looking ahead, Gold Terra's Chairman and CEO, Gerald Panneton, highlighted that the financing marks a crucial step toward advancing operations related to the Con Mine Option Property. The focus will include drilling on historical tailings at the Con Mine site and expanding exploration along Zone 103 N of the Campbell Shear structure. Both programs are set to commence shortly and will contribute to updating the company's mineral resource estimates.
The second tranche of the offering is expected to close around July 31, 2026, contingent upon several conditions. This financing is notable for being non-brokered and lacking warrants. It awaits final approval from the TSX Venture Exchange (TSXV).
While Gold Terra plans to enhance its geological assessments through these drilling efforts, it is important to recognize that the mineral resource estimates can involve various risks, including legal and environmental factors, which may impact potential developments.
Gold Terra Resource Corp. has raised a total of C$10,800,000 in the first tranche of its non-brokered private placement.
Notable investors in the offering include David Harquail and Mackenzie Fund, reflecting significant shareholder interest.
The private placement included the issuance of 8,612,223 common shares at C$0.18 each, 20 million charity flow-through common shares at C$0.25 each, and 10 million flow-through common shares at C$0.22 each.
Proceeds from the offering are intended for general corporate purposes and funding two drilling programs on the Campbell Shear target and Con Mine historical tailings.
Flow-through shares are designed to provide tax benefits to investors in Canada by allowing them to deduct eligible exploration expenses from their taxable income. In this offering, both CFT Shares and FT Shares qualify as flow-through shares under Canadian tax law.
The mineral resource estimates should be viewed with caution, as they do not guarantee economic viability and are subject to various risks that may impact potential mining outcomes.
The forward-looking statements in the announcement carry risks and uncertainties, including potential operational setbacks and market conditions that could prevent anticipated results from being achieved.
Certain officers and directors of the Company purchased shares in the offering, which constitutes a related party transaction. This participation was exempt from formal valuation requirements under applicable regulations.