ESGold Corp. Secures $4.5 Million in Flow-Through Financing for Quebec Exploration
TL;DR
ESGold Corp. raised $4.5M to fund exploration, offering investors tax advantages and positioning for potential gold-silver production by 2026.
ESGold issued 5.3M flow-through shares at $0.85 each, with proceeds allocated to Quebec exploration under specific tax rules and a four-month hold period.
ESGold's clean mining model and sustainable growth strategy aim to create long-term value while advancing environmentally responsible resource development.
ESGold is building a dual-track mining platform with projects in Quebec and Colombia, targeting both immediate cash flow and future discoveries.
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ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has completed a non-brokered private placement of 5.3 million flow-through shares at $0.85 per share, raising gross proceeds of $4,505,000. The capital will be directed toward exploration activities at the company's Montauban Property in Quebec, a flagship gold-silver project currently under construction with production targeted for 2026.
The financing structure utilizes flow-through shares, a mechanism common in Canadian mining finance that allows companies to renounce tax deductions to investors. Proceeds will be allocated to Qualifying Expenditures under federal and provincial tax rules, with amounts to be incurred by December 31, 2026, and renounced effective no later than December 31, 2025. This approach provides tax incentives to investors while funding critical exploration work.
Red Cloud Securities acted as finder in the transaction, receiving $315,350 in cash finder fees. All securities issued in the placement are subject to a statutory four-month-and-one-day hold period ending April 9, 2026, restricting their resale during this timeframe to maintain market stability.
This financing supports ESGold's dual-track strategy of generating cash flow through near-term production while pursuing discovery opportunities for long-term growth. The company describes itself as advancing a scalable clean mining model across North and South America, with the Montauban project representing its primary development asset. ESGold is also advancing a joint venture in Colombia focused on tailings reprocessing and systematic exploration in one of South America's most prolific gold regions.
The capital infusion comes at a critical juncture for the company as it transitions from exploration to pre-production status. Flow-through financings are particularly important for junior mining companies in Canada as they enable access to exploration capital while providing tax benefits to investors who support early-stage mineral development. The successful completion of this $4.5 million placement indicates investor confidence in ESGold's technical team and project portfolio during a period when mining financing has faced challenges due to market volatility and economic uncertainty.
For investors seeking additional information, the company maintains resources including past news releases and a 3D model of the Montauban processing plant available through its corporate website. The full details of the private placement are documented in the official press release accessible at https://ibn.fm/pRKXo. Updates relating to ESGold are also available in the company's newsroom at https://ibn.fm/ESAUF.
Curated from InvestorBrandNetwork (IBN)
