Gemdale Gold has closed a C$2.4 million strategic investment from Eldorado Gold Corporation through a non-brokered private placement, bringing a new strategic partner onto its share register as it advances its exploration portfolio in Finland.
The offering consisted of 2,000,000 units priced at C$1.20 per unit, generating aggregate gross proceeds of C$2,400,000. Each unit comprises one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire an additional common share at C$1.50 for a period of 24 months from issuance. No finder’s fees or commissions were paid in connection with the placement.
Proceeds from the financing will be used to advance Gemdale Gold’s exploration properties in Finland and for general corporate purposes.
In connection with the investment, Gemdale Gold and Eldorado entered into an investor rights agreement granting Eldorado customary participation rights in future equity financings, a right of first refusal on certain project-level interest dispositions, and the right to appoint a representative to a technical committee of the company, subject to customary conditions.
The transaction remains subject to receipt of all necessary regulatory approvals, including approval from the TSX Venture Exchange. Securities issued under the offering are subject to a statutory hold period of four months and one day in accordance with applicable securities laws.
Following completion of the placement, Eldorado now beneficially owns and controls 2,000,000 common shares and warrants representing approximately 9.5 percent of Gemdale Gold’s outstanding common shares on a non-diluted basis and approximately 13.6 percent on a partially diluted basis, assuming full exercise of the warrants. Eldorado acquired the securities for investment purposes and may increase or decrease its ownership position in the future depending on market conditions and other factors.
Eldorado is a gold and base metals producer with mining, development and exploration operations in Canada, Greece and Türkiye. Its common shares trade on the Toronto Stock Exchange and the New York Stock Exchange.
Gemdale Gold is focused on gold and critical minerals exploration in Finland. Over the past eight years as a private company, it has assembled a portfolio of exploration licenses in established and emerging mineral districts.
Its flagship Pontio Gold Project in Western Finland has seen more than 10,000 metres of drilling, primarily along the M2 Trend. Drilling has intersected near-surface gold mineralization along an interpreted strike length of approximately four kilometres. The company plans additional drilling to further delineate known mineralized zones.
Gemdale Gold’s wholly owned principal projects include the Pontio Gold Project in Western Finland, the Isoneva gold project in Western Finland, the Lapland Projects in Northern Finland, the Kumiseva copper-nickel-platinum-palladium exploration license in Western Finland, and the Savo/Rantasalmi exploration license application area in Southeastern Finland. The Isoneva property is subject to an option agreement with Nordique Resources Inc., which may earn a 100 percent interest by funding exploration expenditures over three years and making additional financial commitments.
At Savo/Rantasalmi, the company references a historical inferred resource estimate prepared by a prior operator of 3.23 million tonnes grading 2.7 g/t gold for approximately 276,000 ounces. The estimate is considered historical in nature and has not been classified as current mineral resources or mineral reserves under applicable standards.
Dr. Toby Strauss, Gemdale Gold’s President and Chief Executive Officer, is the qualified person under National Instrument 43-101 responsible for the technical information in the release.
KEY QUOTE:
“We are pleased to welcome Eldorado as a new shareholder and strategic partner. Their investment supports the continued advancement of our exploration portfolio in Finland, and we value the technical depth and operational experience they bring as we move into the next phase of growth for the Company”.
Dr. Toby Strauss, President and Chief Executive Officer, Gemdale Gold Inc.
