Gold Terra Resource Corp. Secures Funding for Exploration Initiatives in Yellowknife
Vancouver, BC – October 23, 2024 – Gold Terra Resource Corp. (TSXV:YGT) has recently announced the successful closing of a non-brokered private placement, raising gross proceeds of C$572,500 through the sale of 11,450,000 common shares at a price of C$0.05 per share. This funding is a significant step for the company as it continues to explore and develop its promising gold properties in the Yellowknife region of the Northwest Territories.
Insider Participation and Related Party Transactions
Notably, an insider of Gold Terra participated in this Offering, acquiring a total of 2,000,000 common shares. This participation qualifies as a "related party transaction" under Multilateral Instrument 61-101, which aims to protect minority security holders in special transactions. However, the Offering is exempt from the formal valuation and minority shareholder approval requirements of this instrument, as the value of the securities issued to related parties does not exceed 25% of the company’s market capitalization. The company opted not to file a material change report 21 days prior to the closing, as the insider participation had not been confirmed at that time.
Allocation of Proceeds
The net proceeds from this Offering will primarily be allocated towards exploration expenditures, particularly drilling on the Con Mine Option property and the Campbell shear target area within Gold Terra’s 100% owned Northbelt property. Additionally, funds will be utilized for general corporate purposes, ensuring the company maintains operational flexibility as it advances its exploration initiatives.
Strategic Exploration Plans
Gerald Panneton, Chairman and CEO of Gold Terra, expressed gratitude to both existing and new shareholders for their support during this financing round. He highlighted the company’s upcoming 2024/2025 drilling program, which will focus on the Campbell shear structure, a historically rich area that has produced significant gold yields. The current drill program aims to enhance the existing Indicated and Inferred resources near the surface and south of the Con Mine, which has a legacy of producing 5.1 million ounces of gold at an impressive average grade of 16 grams per tonne.
The Con Mine property boasts excellent infrastructure, including the Robertson shaft and a water treatment plant, which positions Gold Terra advantageously for future exploration and potential production activities. The mine, which ceased operations in 2003, still holds approximately 650,000 ounces of gold in historic reserves and resources, underscoring the area’s ongoing potential.
Corporate Developments
In addition to the funding announcement, Gold Terra has engaged Trunice Capital (TC) to provide investor relations services in compliance with the TSX Venture Exchange’s policies. In exchange for these services, Gold Terra will pay TC an initial monthly fee of $23,000 from October 15, 2024, to April 15, 2025, and has granted stock options to key personnel. This strategic move aims to enhance the company’s visibility and communication with investors, further solidifying its position in the market.
About Gold Terra Resource Corp.
Gold Terra Resource Corp. is focused on exploring and developing its extensive land holdings in the Yellowknife region, which encompasses 918 square kilometers of contiguous land. The company controls one of Canada’s six major high-grade gold camps, strategically located near vital infrastructure, including all-season roads and hydro-electric power. Gold Terra’s exploration efforts are concentrated on the prolific Campbell Shear, which has historically yielded approximately 14 million ounces of gold.
The Yellowknife Project and the Con Mine Option properties lie along the Yellowknife greenstone belt, a region known for its rich mineralization. Gold Terra’s exploration programs have successfully identified significant gold zones, reinforcing the company’s objective to re-establish Yellowknife as a premier gold mining district in Canada.
Conclusion
Gold Terra Resource Corp.’s recent financing and strategic initiatives signal a strong commitment to advancing its exploration projects in the Yellowknife region. With a solid financial foundation and a clear focus on high-potential targets, Gold Terra is well-positioned to capitalize on the rich geological landscape of the area. As the company embarks on its drilling programs, stakeholders will be keenly watching for developments that could further enhance its resource base and market position.
For more information about Gold Terra Resource Corp. and its projects, visit www.goldterracorp.com.
Contact Information:
- Gerald Panneton, Chairman & CEO
- Mara Strazdins, Investor Relations
- Phone: 1-778-897-1590 | 604-689-1749 ext 102
Disclaimer: This article contains forward-looking information and should be read with caution. Actual results may differ materially from those anticipated.
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