Lode Gold closes $8.05M first tranche of placement
Lode closes its first tranche of a $9 million placement at $0.27 per share to fund the Fremont PFS and drilling.
Lode Gold Resources Inc. has closed the first tranche of its upsized non-brokered private placement, raising gross proceeds of $8,805,817. The company issued 29,845,073 units at a price of $0.27 per unit, with all securities subject to a statutory hold period. The offering was oversubscribed, and the company expects to complete the second and final tranche shortly. Proceeds are designated for advancing technical work at the Fremont Gold Mine, including drilling for a Preliminary Feasibility Study, strengthening the balance sheet, and general working capital. This release serves as a regulatory clarification requested by the TSX Venture Exchange following the July 22 announcement of the upsized offering.
Lode Gold Resources Inc. (LOD) confirmed the successful closure of the first tranche of its financing, a routine follow-up to the July 22 announcement. The transaction demonstrated continued investor interest through oversubscription, providing essential runway to execute the planned 3,500-meter drill program and advance the Pre-Feasibility Study (PFS).
The $0.27 issue price represents a slight discount to the recent trading range of $0.29-$0.33, a standard practice for private placements to attract capital. This financing does not alter the fundamental project economics or represent a strategic partnership; it is a necessary capital raise for a pre-revenue explorer.
Lode Gold Resources Inc. is a gold exploration and development company focused on advancing gold projects in Canada and the United States. Its flagship asset is the Fremont Gold Mine in Mariposa County, California, a brownfield project featuring 43,000 meters of historical drilling, 23 kilometers of underground workings, and 14 adits. The company is transitioning from previous open-pit concepts to a 100% underground bulk mining strategy to optimize economics and minimize surface footprint. A 2026 Mineral Resource Estimate indicates 1.15 million ounces Indicated and 2.17 million ounces Inferred at a 0.82 g/t cut-off.
The Dingman Property in Ontario is also held by the company but is currently being evaluated for strategic options or spin-out. An investor presentation highlights strong economics at current gold prices, with a projected NPV of $1.82 billion at $3,600/oz and an IRR of 94%.