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GoGold gains funds to further Los Ricos

Mexico-focused GoGold Resources has closed a C$28.75 million bought-deal financing to advance its Los Ricos North and South projects and for general corporate purposes.
GoGold gains funds to further Los Ricos GoGold gains funds to further Los Ricos GoGold gains funds to further Los Ricos GoGold gains funds to further Los Ricos GoGold gains funds to further Los Ricos

GoGold Resources’ Los Ricos silver project in Mexico

Staff reporter

The syndicate of underwriters, including Sprott Capital Partners, PI Financial Corp, Eight Capital, Echelon Wealth Partners and Desjardins Securities, exercised their over-allotment option in full, adding $3.75 million to the $25 million raised at $2.50 per share.

GoGold president and CEO Brad Langille said last month the company's Parral tailings retreatment project in Chihuahua had funded the company's exploration programme at Los Ricos for three consecutive quarters.

Parral produced 551,207 silver-equivalent ounces in the March quarter and generated estimated free cash flows of more than US$5.5 million.

GoGold has been reporting "kilos of silver-equivalent" mineralisation at its Los Ricos North project in Jalisco, where a 100,000m drilling programme is underway.

It believes the project could host a bigger gold-silver system than its Los Ricos South project about 20km away, where a preliminary economic assessment in January had outlined an 11-year mine with a base case after-tax NPV5 of $295 million and IRR of 46% using prices of $21/oz for silver and $1,550/oz for gold.

GoGold (TSX: GGD) shares have spanned C71c-$2.88 over the past year.

They closed up 2.3% on Friday to $2.59, valuing it at $718 million (US$593 million).