Gold exploration company Canagold Resources has closed financing of approximately C$4m ($2.8m) through the issuance of flow-through shares and regular common shares to advance its New Polaris gold-antimony project in north-west British Columbia, Canada.

A total of 9.7 million shares were issued under the private placement.

The company sold 4.65 million charity flow-through shares at C$0.43 each for gross proceeds of C$2m, and 5.1 million common shares at C$0.39, raising C$2m.

Private investment company Sun Valley Investments, along with related party Goldlogic, has acquired 2.3 million flow-through shares of Canagold and 2.5 million regular common shares.

A third investor purchased the remaining shares.

Prior to the private placement, Sun Valley Investments controlled approximately 48.16% of the issued and outstanding common shares on an undiluted basis. This latest acquisition has increased its holding to approximately 48.25%.

The funds raised from the issuance of flow-through shares by the company will be allocated to Canadian exploration expenses. These expenses are specifically related to the New Polaris project.

Proceeds from non-flow-through shares will be utilised for the company's working capital.

In July, Canagold's feasibility study for the New Polaris project revealed an after-tax net present value (NPV) of C$425m and an internal rate of return (IRR) of 30.9%, based on a gold price assumption of $2,500/oz.

Should the gold price reach $3,300/oz, the NPV would increase to C$793m, with the IRR climbing to 47.3%.

The study estimates the initial capital expenditure for the project at C$250m. It also forecasts that the life-of-mine after-tax free cash flow could reach C$649m at a gold price of $2,500, rising to C$1.1bn if the price were to increase to $3,300.

The New Polaris project is expected to yield 805,589oz of gold over its 8.3-year lifespan, with an average diluted grade of 9.94 grams per tonne from the high-grade underground mine.