Thesis Gold & Silver (TSX-V:TAU) is set to receive C$58.5 million ($59.34 million) from AngloGold Ashanti (NYSE:AU) through a strategic investment, increasing the gold major’s ownership in Thesis from 5% to 9.7%.
The transaction follows AngloGold’s initial 5% strategic stake completed in February.
The investment strengthens the partnership as Thesis advances its Lawyers-Ranch Gold-Silver Project in British Columbia’s Toodoggone mining district, Canada.
Under the terms of the investment, AngloGold will purchase 8.34 million common shares at C$3.41 each for gross proceeds of C$28.5 million. The agreement also includes flow-through shares totalling C$30 million across British Columbia (BC) and national Canadian exploration (CEE) categories.
The flow-through component features 2.02 million BC CEE flow-through shares at C$4.95 each for C$10 million and 28 million national CEE flow-through shares at C$4.67 each for C$20 million.
President and CEO Ewan Webster says the investment validates the project’s quality and scale.
“Having AngloGold Ashanti as a global gold producer as [a] significant strategic shareholder provides further validation of Lawyers-Ranch and positions Thesis exceptionally well as we advance through feasibility, permitting and continued exploration,” Webster says.
Thesis will use flow-through proceeds for eligible Canadian exploration expenses at Lawyers-Ranch. Qualifying expenditures must be incurred by 31 December 2027 and renounced to subscribers by 31 December 2026.
Common share proceeds will fund working capital and general corporate purposes, including ongoing technical studies.
The companies will also enter an amended investor rights agreement superseding their current 26 February agreement, providing AngloGold with customary investor rights upon meeting certain conditions.
The offering requires TSX Venture Exchange approval and includes a four-month hold period. Thesis anticipates closing around 27 August 2026, subject to customary conditions.
Lawyers-Ranch hosts a mineral resource with gold and silver exposure in the Toodoggone district, with Thesis describing the area as “one of North America’s most prospective emerging precious metal regions”.
Thesis Gold & Silver is a precious metals developer advancing its 100%-owned Lawyers-Ranch Gold-Silver Project in British Columbia.
Write to Paula Fabe at Mining.com.au
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