Fredonia Mining (TSX-V:FRED) has entered a bought-deal private placement to raise about C$10 million ($10.09 million) for its El Dorado Monserrat Project in Argentina.
A syndicate led by ATB Cormark Capital Markets will purchase 15,384,700 common shares at C$0.65 each.
The underwriters can increase the offering by up to C$1.5 million, potentially lifting total gross proceeds to C$11.5 million.
Fredonia says it plans to use the net proceeds for exploration and advancement of El Dorado Monserrat, as well as working capital and general corporate purposes.
The placement is being offered across Canada, excluding Québec, under the Listed Issuer Financing Exemption. Shares issued to eligible Canadian investors will not carry a statutory hold period.
The underwriters may also offer shares in the US and other jurisdictions under available registration exemptions.
Closing is expected around 23 September, subject to an underwriting agreement and necessary regulatory approvals, including TSX Venture Exchange approval if required.
Fredonia holds about 64,000 hectares of gold and silver licences in Argentina’s Deseado Massif region.
Its flagship El Dorado Monserrat Project covers about 33,500 hectares near AngloGold Ashanti’s (NYSE:AU) Cerro Vanguardia Gold-Silver Mine, which produced approximately 180,000 ounces of gold during the 12 months ended 30 June 2026.
Fredonia’s portfolio also includes the 9,100-hectare El Águila Project and the 21,500-hectare Hornia Project in Santa Cruz province.
Write to France Pinzon at Mining.com.au
Images: Fredonia Mining
