San Lorenzo Gold (TSX-V:SLG) has closed an upsized C$80 million ($82.1 million) placement to fund an expanded exploration program at its Salvadora Project in Chile.
Under the placement, the company issued roughly 15.1 million common shares at C$5.30 each for gross proceeds of C$80 million. The shares last closed at C$6.30 on 9 November, giving the company a market capitalisation of about C$689.44 million across an estimated 109.46 million shares.
A tranche of 9.43 million shares raised around C$50 million under the listed issuer financing exemption and carries no hold period. The remaining approximately 5.66 million shares raised C$30 million under prospectus exemptions and face a hold period expiring on 11 March 2027.
San Lorenzo plans to deploy the net proceeds to exploration drilling and technical studies at Salvadora, operational capabilities, infrastructure, and general working capital. The placement remains subject to final acceptance by the TSX Venture Exchange.
CEO Brandon Gaspar says the financing is a key milestone for the company.
“Raising C$80 million at this stage of our exploration is a significant milestone for San Lorenzo, particularly given the calibre of investors supporting the company,” Gaspar says.
“These are among the world’s leading resource investors, with established track records of backing successful gold exploration companies, including several that have ultimately been acquired by major gold producers.
“This financing gives us the flexibility to pursue a substantially larger exploration program across Salvadora, following up on results and testing new targets as we continue to expand our technical and operational capabilities.”
He adds that the company aims to “scale systematically, allocating capital where the geology justifies it”.
Gaspar and Executive Chairman Al Kroontje subscribed for a combined 75,472 shares for C$400,000 as a related-party transaction, relying on formal valuation and minority approval exemptions.
San Lorenzo Gold is a Canadian mineral exploration company advancing its 100%-owned Salvadora Project in Chile’s Atacama region.
Write to Paula Fabe at Mining.com.au
Main image: San Lorenzo Gold
