Chesapeake Gold Announces Closing of $17.2 Million Bought Deal Public Offering (Over-Allotment Option Exercised in Full) and $2.8 Million Non-Brokered Private Placement with Participation by Eric Sprott

On January 27, 2026, Chesapeake Gold Corp. (CKG) announced the closing of a combined $20.1 million financing package. This consisted of a $17.25 million bought deal public offering (including the full exercise of the over-allotment option) and a $2.87 million non-brokered private placement. Both offerings were priced at $4.20 per unit. Each unit includes one common share and one warrant exercisable at $5.65 for 36 months. Notable billionaire investor Eric Sprott participated in the private placement, maintaining a significant stake. The proceeds are earmarked for the advancement of the company’s proprietary oxidative leach technology and its flagship Metates and Lucy projects in Mexico.

This news is Material - Positive for three critical reasons: - Capital De-risking: The company’s September 30, 2025, financial statements showed cash of $10.4 million. This $20.1 million infusion roughly triples their cash reserves, providing the necessary runway to complete the 2026 Pre-Feasibility Study (PFS) for Metates without immediate insolvency risks. - Institutional/Strategic Validation: Closing at $4.20—a massive 250% premium to the $1.20 financing closed in June 2025—demonstrates significant market appetite and institutional support. The exercise of the full over-allotment suggests the offering was oversubscribed. - Sprott Support: Eric Sprott’s participation at $4.20, following his June 2025 entry at $1.20, indicates a high-conviction "double down" by a major industry figure, signaling internal confidence in the proprietary leaching technology.

Chesapeake Gold Corp. focuses on its 100%-owned Metates project in Durango, Mexico. Metates is one of the world’s largest undeveloped gold-silver-zinc deposits. The company’s core strategy involves a proprietary oxidative heap leach technology designed to process refractory ores more economically than traditional pressure oxidation (POX) or roasting. This technology is the "key" to unlocking the massive Metates resource, which previously faced prohibitive CAPEX requirements.