Sitka Gold Closes $28.5 Million Financing
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On October 30, 2025, Sitka Gold Corp. announced the closing of a significant financing package totaling approximately $28.55 million. This was comprised of: - A $25 million "bought deal" private placement of 16,235,000 charity flow-through shares at a price of $1.54 per share. - A concurrent non-brokered private placement of 2,305,521 charity flow-through shares at the same price of $1.54 per share, raising an additional $3.55 million.
The company also announced its intention to complete a further non-brokered private placement of up to 1,500,000 traditional flow-through shares at $1.37 each for gross proceeds of up to $2.055 million, noting that existing strategic investors are expected to participate.
The total gross proceeds will be used to incur eligible "Canadian exploration expenses" at the company's flagship RC Gold Project in the Yukon.
This is a material and positive event that significantly de-risks the company's financial position and validates its recent exploration success.
- Size and Price: Raising over $28.5 million at $1.54 per charity flow-through share is a major accomplishment. The price represents a substantial premium to the market price just a few months prior, indicating very strong institutional demand and a belief in the project's potential. The "bought deal" structure, led by a syndicate of investment banks, further underscores this institutional validation.
- Fully Funded for Aggressive Exploration: This capital injection, on top of an already healthy treasury, ensures Sitka is fully funded to execute and potentially expand its planned exploration programs for the foreseeable future. The company can now aggressively drill its multiple high-priority targets, particularly the emerging Rhosgobel discovery, without the overhang of near-term financing needs.
- Follows a String of Exploration Success: The financing comes on the heels of excellent drill results announced throughout 2025, culminating in the September 18 release of 235.9 metres of 1.11 g/t gold from surface at the new Rhosgobel discovery. This successful capital raise is a direct market endorsement of that exploration progress.
- Strategic Investor Confidence: The announcement of an additional placement with participation from "existing strategic investors" signals continued insider and key shareholder support, which is a strong positive indicator.
From a critical standpoint, while the financing is excellent, it also leads to further share dilution. However, raising capital at a premium price from a position of strength is the ideal way to fund exploration. The risk for investors now shifts from financing risk to execution risk: the company must deploy this capital effectively to continue delivering value-accretive drill results that justify the expanded valuation.
Sitka Gold Corp. is a Canadian mineral exploration company focused on its 100% owned, 431 sq. km RC Gold Project in the Yukon's prolific Tombstone Gold Belt. The project is road-accessible and strategically located between Victoria Gold's Eagle Gold Mine and a past-producing Brewery Creek Gold Mine.
The flagship project already hosts a significant NI 43-101 compliant pit-constrained gold resource at its Blackjack and Eiger deposits, with an Indicated resource of 1.3 million ounces and an Inferred resource of 1.5 million ounces (as of Jan 21, 2025). The company's 2025 exploration program has led to a significant new discovery at the Rhosgobel target, which is showing potential to become a third, and possibly flagship, deposit on the property.