Troilus Gold Corp. (TSE:TLG) has announced a bought deal public offering of common shares that will raise approximately $12 million. The shares are priced at $0.85 each.
The shares will be purchased by a syndicate of underwriters co-led by Canaccord Genuity and GMP Securities. The underwriters have been granted an over-allotment of 2.1 million shares that would, if fully exercised, raise an additional $1.8 million.
Net proceeds from the offering will be used to continue exploration and definition drilling at the Troilus gold-copper project 175 km from Chibougamau, Que. The former mine at the site produced 2.0 million oz. of gold and 70,000 tonnes of copper from 1996 to 2010.
Troilus aims to restart the open pit and develop the underground portion of the deposit. Indicated open pit resources are 97.5 million tonnes grading 0.76 g/t gold and 0.078% copper and inferred pit resources are 21.7 million tonnes at 0.60 g/t gold and 0.062% copper. The underground resources total 24.2 million indicated tonnes at 1.32 g/t gold and 0.121% copper, plus 14.5 million inferred tonnes at 1.31 g/t gold and 0.115% copper.
(This article first appeared in the Canadian Mining Journal)
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