SNOWLINE COMPLETES C$172.6 MILLION BOUGHT DEAL PUBLIC OFFERING OF COMMON SHARES INCLUDING FULL EXERCISE OF OVER-ALLOTMENT OPTION
Snowline’s $14.50 bought deal closes, bankrolling engineering and permitting for the Valley deposit.
Snowline Gold Corp. completed a bought deal public offering of 11,902,500 common shares at C$14.50 per share, including the full exercise of the over-allotment option. The transaction generated aggregate gross proceeds of C$172,586,250. Existing shareholder B2Gold Corp. participated in the offering to maintain its 9.9% equity stake.
Net proceeds will fund engineering and permitting costs toward a potential construction decision for the Valley gold deposit, alongside general corporate purposes. The transaction closes on August 12, 2026, following the initial announcement on August 5, 2026. Underwriters include BMO Capital Markets (sole bookrunner) and CIBC World Markets Inc. (co-lead), with a 4.0% cash commission.
Snowline Gold Corp. (SGD) has completed a C$150 million financing, a transaction that included the exercise of its 30-day over-allotment option. The market had previously been aware of the initial announcement and the potential for the over-allotment.
The capital raise is intended to de-risk near-term cash burn and fully fund the path to the completion of the Pre-Feasibility Study (PFS), which is targeted for early 2027. Management has highlighted a strengthened treasury and the ability to accelerate engineering and permitting activities. However, the company did not discuss the capital required for the subsequent Feasibility Study and construction phase, which is estimated at approximately C$1.7 billion in capital expenditures.
The offering price of C$14.50 per share represents a discount to the recent trading range of approximately $16.93. While this discount is standard for bought deals, it introduces immediate dilution of approximately 11.9 million shares. The transaction aligns with previous expectations, providing operational runway without altering the fundamental development timeline or project economics.
Snowline Gold Corp. (SGD) is a development-stage gold explorer focused on the Rogue Project in the Yukon Territory, Canada. Its flagship asset is the 100%-owned Valley gold deposit.
The company’s Mineral Resource Estimate includes 7.94 million ounces at 1.21 g/t Au in the Measured and Indicated category, and 0.89 million ounces at 0.62 g/t Au in the Inferred category. A Preliminary Economic Assessment indicates a 20-year mine life, a C$3.4 billion NPV5% at $2,150/oz gold, a 25% post-tax IRR, and a low all-in sustaining cost of US$569/oz during Years 2-6.
The project is transitioning from exploration to development. A Preliminary Feasibility Study is underway with engineering consultants Wood Canada, SRK, and WSP appointed. The project is located in the Yukon, Canada, a jurisdiction characterized by safety, stability, established permitting processes, and strong First Nation engagement, including a memorandum of understanding signed with Na-Cho Nyák Dun.