Scorpio Gold Announces Closing of Public Offering for Gross Proceeds of $10,800,000
Scorpio’s discounted $10.8m equity raise extends Manhattan drilling runway amid dilution.
Scorpio Gold Corporation announced the closing of an upsized "best efforts" public offering, issuing 43,200,000 common shares at $0.25 per share to raise $10,800,000 in gross proceeds. The transaction included the partial exercise of the agents' over-allotment option for 3,200,000 shares.
The net proceeds are designated for exploration at the Manhattan Property and for general corporate and working capital purposes. Agents Velocity Capital Partners and Raymond James Ltd. received $613,500 in cash commissions and 2,454,000 non-transferable broker warrants exercisable at $0.25 for 24 months. The offering remains subject to final TSX Venture Exchange acceptance.
Scorpio Gold Corporation (SGN) closed a financing at $10.8 million, a figure that includes over-allotment. The deal was initially announced at $5 million and upsized to $10 million on July 16. The progression from the initial announcement to the final close indicates strong institutional and retail demand, as well as an urgency to secure capital.
The shares were issued at $0.25, a slight discount to the recent market price of $0.26. This pricing reflects typical junior mining financing dynamics, where discounts are often required to close quickly in volatile markets.
The transaction results in material dilution, with 43.2 million new shares issued against a basic share count of approximately 302.3 million, representing roughly 14.3% dilution. When combined with approximately 26.5 million options, 7.9 million restricted stock units (RSUs), and 2 million existing warrants, fully diluted shares approach 339 million.
The capital raise directly funds the ongoing Phase 2 drilling program, which targets 50,000 meters, and offsets Q1 2026 cash burn. The company remains in a pre-revenue, exploration-stage risk profile. No strategic premium investors or first-time major strategic shareholders are involved in this standard market financing.
Scorpio Gold Corporation (SGN) holds a 100% interest in the Manhattan District in Nye County, Nevada, located approximately 15 km south of Kinross Gold's Round Mountain Mine. The district includes the advanced exploration-stage Goldwedge Mine, which features a permitted 400 t/d gravity mill and four historic pits.
In June 2025, the company released a maiden Mineral Resource Estimate for the property, reporting 18.34 million tonnes at 1.26 g/t Au for 740,000 oz contained gold in the Inferred category. Historical production in the district totals approximately 700,000 oz Au.
Current exploration efforts center on a 50,000-metre Phase 2 drilling program aimed at expanding resources along the Reliance Trend, Zanzibar Trend, Black Mammoth, and Mustang Hill.