1911 GOLD ANNOUNCES FILING OF FINAL SHORT FORM PROSPECTUS IN CONNECTION WITH $31 MILLION BOUGHT DEAL FINANCING
1911 Gold upsizes its bought deal to $31 million to secure funding for the 2027 restart of the True North project.
1911 Gold Corporation has filed its final short form prospectus for a $31 million bought deal public offering, an increase from the previously announced $20 million transaction in June 2026. The offering is managed by Haywood Securities Inc., with a syndicate that includes BMO Nesbitt Burns Inc., Roth Canada, Inc., and Velocity Trade Capital Ltd.
Units are priced across multiple tranches ranging from $0.64 to $1.011, including standard units, Canadian Development Expense (CDE) units, and Canadian Exploration Expense (CEE) flow-through units. Each unit consists of one common share and one-half of a common share purchase warrant exercisable at $1.00 per share for 24 months. The underwriters hold a 15% over-allotment option exercisable within 30 days of closing.
Net proceeds will fund continuing exploration and development at the True North gold project, technical studies, and general working capital. The transaction is subject to TSX Venture Exchange approval and is expected to close on or about July 29, 2026.
1911 Gold Corporation (AUMB) announced a $31 million financing, a direct follow-up to the company’s June 16/17 announcements. The capital raise is intended to fund the company's aggressive 2027 restart timeline. The offering was upsized from $20 million to $31 million, providing an additional liquidity buffer to support the high capital intensity of underground development and test mining.
The financing is routine and incremental, introducing no new strategic shifts or unexpected catalysts. The market was already pricing in a capital raise to support the PEA-driven restart plan. Dilution remains a concern, with new warrants issued at $1.00, above the current share price of $0.64. However, the cash injection is necessary to avoid execution delays.
Regulatory overhang from the July 2, 2026 clarification regarding the February PEA disclosure remains a background risk, but the financing itself is standard and compliant.
1911 Gold Corporation is an advanced-stage gold explorer and developer transitioning to a production company. Its flagship asset is the True North Gold Project, located in Manitoba's Archean Rice Lake greenstone belt. The project features fully built and permitted infrastructure, including shafts, underground workings, and a 1,300 t/d processing plant, with an estimated replacement value exceeding $400 million.
A February 2026 Preliminary Economic Assessment (PEA) outlined an 11-year mine life with steady-state production of 58,114 oz Au/year, an after-tax net present value (NPV) of $391 million, and an internal rate of return (IRR) of 105% at $3,000/oz gold. The company targets a 2027 operational restart, leveraging existing infrastructure to minimize initial capital expenditure.