Scorpio Gold Corporation Announces Marketed Public Offering for Gross Proceeds of Up To $8 Million
Scorpio Gold raises $8m at a 7% discount to fund drilling at Manhattan, where strong intercepts have been reported.
Scorpio Gold Corporation (SGN) announced a best-efforts public offering of up to 32 million common shares at C$0.25 per share, targeting gross proceeds of up to C$8 million. The company has granted agents an over-allotment option to purchase an additional 4.8 million shares on the same terms.
Net proceeds from the offering will be used to fund exploration at the Manhattan Property and for general corporate and working capital purposes. The offering is being made via a prospectus supplement to the base shelf prospectus dated July 6, 2026, with an expected closing on or about July 23, 2026. Velocity Trade Capital Ltd. is serving as the lead agent.
Scorpio Gold Corporation (SGN) announced a base offering of 32 million new shares, representing approximately 10.6% dilution from the 302.96 million shares outstanding as of June 24, 2026. With the inclusion of full over-allotment, total dilution rises to approximately 11.9%. The shares were issued at C$0.25, a 7.4% discount to the last closing price of C$0.27 on July 14, 2026.
The offering follows the announcement of a strong drill result on July 14, 2026, which reported 2.05 g/t Au over 97.99 m. Financial statements indicate the company held C$5.7 million in cash at Q1 2026, a declining balance. As a pre-revenue exploration company, Scorpio Gold is conducting a 50,000-meter drill program that costs several million dollars per quarter. This capital raise is necessary to continue operations, highlighting the company’s ongoing reliance on external financing.
The stock has been in a persistent downtrend from a C$0.60 peak in February 2026 to around C$0.27. The financing adds further supply of shares at a time when demand is weak. While the infusion of capital enables continued exploration, the financing itself is not value-accretive and merely sustains the company’s burn rate.
Scorpio Gold Corporation (SGN) holds a 100% interest in the Manhattan District project in Nevada, USA, comprising approximately 4,780 hectares of claims. The property includes four past-producing pits acquired from Kinross in 2021 and the Goldwedge Mine, which features a 400 tpd gravity mill. The project is a low-sulphidation epithermal gold system located approximately 15 km south of the Round Mountain Mine, with historic production totaling approximately 700,000 oz Au.
In June 2025, the company reported a maiden inferred resource of 18.34 Mt at 1.26 g/t Au for 740,000 oz across the Goldwedge and Manhattan Pit areas. A historical, non-current resource of 1.65 Mt at 5.89 g/t Au for 304,000 oz covers satellite targets including Black Mammoth and Keystone.
Scorpio Gold sold its non-core Mineral Ridge project in August 2025 for US$7.5 million and is now focused exclusively on expanding Manhattan. A 50,000-metre drill program (Phase Two) began in late 2025, targeting resource expansion across multiple areas including the Zanzibar Trend, Black Mammoth, and Goldwedge. Significant high-grade intercepts continue to be reported.