Canadian Gold Corp. Closes $3 Million Financing, McEwen Mining Inc. Becomes 5.9% Strategic Shareholder

Canadian Gold Corp. Closes $3 Million Financing, McEwen Mining Inc. Becomes 5.9% Strategic Shareholder

Canadian Gold Corp. (TSXV: CGC) ("Canadian Gold" or the "Company") is pleased to announce that it has closed its non-brokered financing previously announced on March 10, 2025. The Company issued 8,823,529 charity flow-through shares (the "Charity FT Shares") at a price of $0.28 per Charity FT Share and 2,941,176 common share units (the "Share Units") at a price of $0.17 per Share Unit for aggregate gross proceeds to the Company of approximately $3 million (the "Offering"). McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) participated in the Offering as a strategic investor. McEwen Mining now owns 5.9% of Canadian Gold's outstanding shares and 7.3% on a partially diluted basis. Rob McEwen, McEwen Mining's Chairman and Chief Owner owns 32% of Canadian Gold's outstanding shares.

Each Share Unit consisted of one non-flow-through common share of the Company (the "Common Shares") and one whole common share purchase warrant (the "Share Warrant") that will entitle McEwen Mining to acquire one Common Share of the Company for an exercise price of $0.22 per Common Share until March 27, 2026. The Common Shares, Share Warrants, Charity FT Shares and all securities issuable thereunder will be subject to a hold period until July 28, 2025 in accordance with applicable securities legislation. No finder's fees were paid in connection with the Offering.

The Company will use the gross proceeds from the issue and sale of the Charity FT Shares, pursuant to the provisions in the Income Tax Act (Canada) ("Tax Act"), to incur, on or before December 31, 2026, eligible "Canadian exploration expenses" within the meaning of the Tax Act that qualify as (i) "flow-through mining expenditures" as defined in subsection 127(9) of the Tax Act; and (ii) "flow-through mining expenditures" as defined in subsection 11.7(1) of The Income Tax Act (Manitoba), once renounced to a subscriber who is either a resident in Manitoba or otherwise liable to pay tax under The Income Tax Act (Manitoba) (the "Qualifying Expenditures"). All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2025.

The Company intends to use the aggregate proceeds from the Offering to:

  1. Target the deeper extensions of the Main Zone, which remains open. Limited drilling in this area has returned 12.0 gpt gold over 8.0 metres and 12.7 gpt gold over 3.4 metres.
  1. Drill Main Zone's Western Flank where recent step-out drilling has intercepted 11.6 gpt gold over 5.6 metres and 7.1 gpt gold over 6.0 metres.
  1. Target the Main Zone's Eastern Flank which returned 9.7 gpt gold over 4.2 metres.
  1. Define the limits of the South Zone's potentially important depth extensions where the first drill hole recently returned 6.1 gpt gold over 6.0 metres and the newly discovered South Zone Hanging Wall Zone that has returned 29.1 gpt gold over 5.9 metres and 8.4 gpt gold over 2.0 metres.
  1. Help advance development studies at the Tartan Mine.

The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state security laws, and may not be offered or sold in the United States without registration under the U.S. Securities Act and all applicable state securities laws or compliance with requirements of an applicable exemption therefrom. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Qualified Person

The scientific and technical information disclosed in this news release was reviewed and approved by Wesley Whymark, P. Geo., Consulting Geologist for the Company, and a Qualified Person as defined under National Instrument 43-101.

For Further Information, Please Contact:

Michael Swistun, CFA
President & CEO
Canadian Gold Corp.
(204) 232-1373
info@canadiangoldcorp.com

About Canadian Gold Corp.

Canadian Gold Corp. is a Toronto-based mineral exploration and development company whose objective is to expand the high-grade gold resource at the past producing Tartan Mine, located in Flin Flon, Manitoba. The historic Tartan Mine currently has a 2017 indicated mineral resource estimate of 240,000 oz gold (1,180,000 tonnes at 6.32 g/t gold) and an inferred estimate of 37,000 oz gold (240,000 tonnes at 4.89 g/t gold). The Company also holds a 100% interest in greenfields exploration properties in Ontario and Quebec adjacent to some of Canada's largest gold mines and development projects, specifically, the Canadian Malartic Mine (QC), the Hemlo Mine (ON) and Hammond Reef Project (ON). The Company is 32% owned by Robert McEwen, who was the founder and CEO of Goldcorp and is Chairman and CEO of McEwen Mining.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This news release of the Company contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Canadian Gold's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246393

News Provided by Newsfile via QuoteMedia

CGC:CC
The Conversation (0)
John Feneck, gold bars.

John Feneck: Gold Backdrop Looks “Amazing,” Plus 7 Stocks to Watch Now

John Feneck, portfolio manager and consultant at Feneck Consulting, outlines his updated outlook for gold as the yellow metal continues to reach new highs.

He also discusses seven gold and "special situations" companies that are on his radar.

Keep reading...Show less
Athena Gold

Athena Gold Upsizes Flow-Through Private Placement, Announces Concurrent Hard Dollar Unit Offering

Athena Gold Corporation (CSE:ATHA) (OTCQB:AHNR) ("Athena Gold" or the "Company") is pleased to announce that due to strong demand, the Company has increased the size of the non-brokered flow-through private placement previously announced on April 7, 2025, from $500,000 to $700,000 (the "FT Offering"). The FT Offering, as amended, will now consist of up to 14,000,000 flow-through common shares (the "FT Shares") (increased from 10,000,000 FT Shares) at a price of $0.05 per FT Share. All other terms of the FT Offering remain unchanged.

Non-Flow-Through Unit Private Placement

Keep reading...Show less
Castle Minerals (ASX:CDT)

Analyst Spotlight: Castle Minerals' Path to Significant Gold Discovery in Ghana

A recent research report by Terra Studio highlights Castle Minerals’ (ASX:CDT) investment value proposition as a gold exploration company with significant potential in Ghana's gold-rich region. With an enterprise value of just AU$3.4 million, Terra Studio considers Castle Minerals significantly undervalued given its promising drill results, strong government support for its graphite project, and potential for continued discoveries amid record-high gold prices.

Keep reading...Show less
Gold coin stacks with up arrow.

Gold Price Hits New Record, Breaking US$3,300 for First Time

The gold price reached yet another record high on Wednesday (April 16), breaking US$3,300 per ounce.

The precious metal has gained significant momentum since the beginning of the year. In trading on Wednesday it surged past the US$3,200 mark, climbing as high as US$3,354.10 per ounce. The price retreated below the US$3,300 mark on Thursday (April 17).

The rise comes after statements from US Federal Reserve Chairman Jerome Powell made at the Economic Club of Chicago on Wednesday. In his remarks, he said that he expects US President Donald Trump's tariff policy to negatively impact US economic growth and further fuel inflation.

Keep reading...Show less
Three gold bars on price chart with magnifying glass.

What Was the Highest Price for Gold?

Gold has long been considered a store of wealth, and the price of gold often makes its biggest gains during turbulent times as investors look for cover in this safe-haven asset.

The 21st century has so far been heavily marked by episodes of economic and sociopolitical upheaval. Uncertainty has pushed the precious metal to record highs as market participants seek its perceived security. And each time the gold price rises, there are calls for even higher record-breaking levels.

Gold market gurus from Lynette Zang to Chris Blasi to Jordan Roy-Byrne have shared eye-popping predictions on the gold price that would intrigue any investor — gold bug or not.

Keep reading...Show less
1 ounce gold bullion bar on top of US$100 bill and Tax Form 1040.

US Capital Gains Tax Guide for Gold and Silver Investors

As gold and silver continue to prove their worth as sound investments, market participants should know how precious metals investments are taxed in the US.

While the majority of gold and silver investing comes with a certain degree of taxation, there are different levels of tax based on how market participants decide to invest in these precious metals, how long the investments are held for and the investors individual tax bracket.

Read on for a breakdown of the taxes associated with investing in gold and silver bullion, ETFs and stocks, as well as the forms involved with reporting precious metals investments.

Keep reading...Show less

Latest Press Releases

Related News

×