GoGold Resources (TSX: GGD) has closed its previously announced bought deal offering that raised about $65 million for its Los Ricos North and South silver-gold projects. The projects are about 25 km apart in the state of Jalisco, Mexico.
GoGold offered 28.9 million common shares at a price of $2.25 each. The shares were taken up by a syndicate of underwriters lead by BMO Capital Markets. The underwriters received a 5.5% commission and an option to purchase an additional 4.3 million shares at the same price on ore before March 10, 2023.
After acquiring the Los Ricos properties in 2019, GoGold completed a preliminary economic assessment of Los Ricos South in Jan. 2021. It foresees an 11-year mine life producing a total of 42.9 million oz. of silver, 352,000 oz. of gold, and 4.5 million lb. of copper. The project carries a net present value (5% discount) of $295 million with an after-tax internal rate of return of 46%. The average all-in sustaining cost will be $11.35 per oz. silver-equivalent.
Resources at the southern project included 10.0 million measured and indicated tonnes grading 119 g/t silver and 0.92 g/t gold. The indicated portion is 3.3 million tonnes at 112 g/t silver and 0.88 g/t gold.
The first resource estimate for the Los Ricos North project was made in Dec. 2021. It includes inferred resources from six different zones and totalling 22.3 million tonnes grading 122 g/t silver and 1.66 g/t gold. The inferred resource is 20.5 million tonnes at 111 g/t silver and 1.51 g/t gold.
Additional detail about the Los Ricos projects is posted at www.GoGoldResources.com.