Newcore Gold (TSXV: NCAU) is looking to raise further funds for its exploration program despite the poor market conditions. The firm this morning indicated it is looking to raise $5.0 million to fund exploration and development of the firms flagship Enchi Gold project in Ghana.
The offering, to be led by Stifel GMP, is to be conducted on a bought deal basis. Shares under the program are to be sold at a price of $0.30 per each, with no warrant to be included in the financing.
In addition to the development of the firms flagship asset, the company intends to use proceeds for working capital as well as general corporate purposes. The offering is slated to close July 12.
The company is currently undergoing a 90,000 metre drill program at its Enchi project, with the company earlier this month reporting intersects of 1.29 g/t gold over 13.0 metres amongst other results. Drilling is typically only going to depths of 75 metres on average, enabling a significant number of holes to be drilled under the current program, with 549 holes completed thus far for 86,565 metres in aggregate.
Newcore last completed a financing in August 2021, when they raised $11.5 million at a price of $0.60 per share, with no warrant included in that financing.
Newcore Gold last traded at $0.335 on the TSX Venture.
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