Canadian mining company Probe Gold plans to raise more than C$15m ($11m) through a private placement.

Probe Gold initially aims to raise more than C$2.5m by issuing two million non-flow-through shares at C$1.21 each.

Subsequently, the company intends to raise C$12.5m through the issuance of 6.31 million flow-through shares priced at C$1.98 per share.

In addition to the planned offering, the underwriters, Beacon Securities and Canaccord Genuity, will have an over-allotment option to buy additional shares totalling approximately C$3m.

The offering is scheduled to close around 19 June 2024, contingent upon Probe Gold receiving all necessary regulatory approvals.

Proceeds from the offering will be utilised to advance exploration and drilling activities at Probe Gold’s flagship Novador Gold project and the Detour Gold project.

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The company also plans to allocate funds for working capital requirements.

Probe Gold controls an extensive land package in Quebec, covering around 1,685km² within some of the region’s most prolific gold belts.

Its Novador Gold project, a district-scale land package of 436km², is one of the largest in the Val-d’Or mining camp and has a multimillion-ounce gold potential.

The company’s preliminary economic assessment for the Novador Gold project indicates a mining plan with an estimated average annual gold production of 255,000oz over a 12.6-year mine life.

On the other hand, the Detour project is in the early stages of exploration. It lies along the lateral extensions of the Detour Lake mine and the 58N gold deposit, currently owned by Agnico Eagle Mines.