Snowline Gold Announces C$150 Million Bought Deal Financing
Snowline raises C$150 million via a bought deal at near-market price to reinforce its war chest ahead of the PFS.
Snowline Gold Corp. (SGD) entered a bought-deal financing agreement for 10,350,000 common shares at C$14.50 per share, raising approximately C$150 million. Underwriters led by BMO Capital Markets have a 30-day, 15% over-allotment option. Proceeds are designated for advancing Yukon projects, working capital, and general corporate purposes. The offering is expected to close on or about August 12, 2026, subject to regulatory approvals.
Snowline Gold Corp. (SGD) raised approximately C$150 million, adding to its existing cash position of roughly C$100 million as of May 2026. This transaction results in a pro forma treasury of approximately C$250 million. The financing involved the issuance of 10.35 million new shares, representing about 5.9% of the 175.9 million basic shares outstanding as of March 31, 2026. The deal price was set at C$14.50, a 0.9% discount to the last close of C$14.63.
The capital raise eliminates near-term capital-raising risk, providing the company with the flexibility to fund its Prefeasibility Study (PFS), continued exploration, and early-stage development without relying on additional equity or commodity market conditions. The large bought deal was led by BMO Capital Markets.
Compared to the C$102 million raised at C$9.00 in September 2025, the higher deal price reflects project progress and improved market sentiment. For a project with an initial capital estimate of C$1.7 billion, the strengthened balance sheet provides a significant cash buffer.
Snowline Gold Corp. (SGD) is a Canadian gold explorer and developer focused on the 100%-owned Rogue Project in the Yukon, which hosts the Valley gold deposit. The Valley deposit contains a Measured & Indicated resource of 7.94 million ounces of gold at 1.21 grams per tonne, along with 0.89 million ounces of Inferred resources. A preliminary economic assessment, based on a base case of US$2,150 per ounce of gold, indicates an after-tax net present value at a 5% discount rate of C$3.4 billion and an internal rate of return of 25%, with a 2.7-year payback period on C$1.7 billion in initial capital expenditure.
A prefeasibility study is currently underway, with completion targeted for early 2027. The Yukon Environmental and Social Assessment Board (YESAB) assessment is expected in the third quarter of 2026. No royalties were disclosed, suggesting the project is royalty-free.