Lode Gold Further Upsizes Private Placement to $9.872 Million and Closes Final Tranche
Lode closes Fremont PFS financing to fund its underground pivot, continuing shareholder dilution as the company advances the project.
Lode Gold Resources Inc. announced the upsizing and closing of the second and third (final) tranches of its non-brokered private placement. The company raised a total aggregate of CAD $9,782,000, issuing 35,982,331 Units at CAD $0.27 per unit.
The second tranche consisted of 3,488,261 Units for CAD $941,830, while the third and final tranche included 2,648,997 Units for CAD $715,229. Senior officers participated in the offering, subscribing for 237,037 Units for CAD $64,000.
Each unit includes one common share and one common share purchase warrant exercisable at CAD $0.45 for 36 months. An acceleration clause triggers if shares close at $0.80 for ten consecutive days. The securities are subject to a statutory hold period of four months and one day.
Proceeds will be used to advance technical work at the Fremont Gold Mine, including drilling for a Preliminary Feasibility Study, to strengthen the balance sheet, repay debt, and provide working capital. Additionally, the company entered a marketing and IR agreement with Spark Newswire Inc. for eight months, involving US $75,000 cash and 625,000 stock options exercisable at CAD $0.60.
Lode Gold Resources Inc. (LOD) has closed the final tranches of its previously announced upsized financing, a move that fulfills its capital raise target. The company issued approximately 36 million new units at $0.27 each, increasing the share count by roughly 58% from the ~62 million shares outstanding. While this significant dilution offsets the improvement to the balance sheet, the proceeds will directly fund the 3,500-meter drill program and engineering studies required for the 2027 Preliminary Feasibility Study (PFS). This capital deployment aligns with management's stated roadmap and reduces immediate liquidity pressure, though it does not alter the fundamental execution risk or timeline for the Fremont project. Additionally, an investor relations agreement has been put in place to support investor visibility ahead of the PFS, adding a minor cost burden to the company.
Lode Gold Resources Inc. is a junior exploration and development company focused on the Fremont Gold Mine in Mariposa County, California. The project is a brownfield, past-producing mine suspended in 1942, now pivoting to a 100% underground bulk mining strategy. The company controls a land package of 3,351 acres of 100% privately owned patented land.
An updated 2026 mineral resource estimate (MRE) shows 1.15 million ounces of Indicated and 2.17 million ounces of Inferred resources at a 0.82 g/t Au cut-off. The development path involves 2026 drilling and engineering studies feeding into a 2027 preliminary feasibility study (PFS), targeting a pilot plant in 2028 and commercial production by 2030. Secondary assets include the Dingman Property in Ontario and exploration properties in Yukon and New Brunswick, which were spun out as Gold Orogen Resources.