The funds raised from the issuance of flow-through shares by the company will be allocated to Canadian exploration expenses.
Sun Valley Investments, in partnership with related entity Goldlogic, acquired 2.3 million flow-through shares and 2.5 million common shares. A third investor purchased the remaining shares. Prior to this placement, Sun Valley Investments held 48.16% of Canagold’s common shares on an undiluted basis, with its stake now slightly increased to 48.25%.
The proceeds from the flow-through shares will fund exploration expenses for the New Polaris project, while funds from the common shares will support the company’s working capital. A feasibility study released in July 2025 highlighted the project’s potential, estimating an after-tax net present value of C$425 million and an internal rate of return of 30.9% at a gold price of $2,500 per ounce. At $3,300 per ounce, the net present value could rise to C$793 million, with the internal rate of return reaching 47.3%.
The study projects an initial capital expenditure of C$250 million for the high-grade underground mine, which is expected to produce 805,589 ounces of gold over 8.3 years at an average diluted grade of 9.94 grams per tonne. The life-of-mine after-tax free cash flow is forecasted at C$649 million at $2,500 per ounce, increasing to C$1.1 billion at $3,300 per ounce.
Canagold’s CEO, Catalin Kilofliski, stated: “This financing strengthens our ability to advance the New Polaris project, a high-grade gold asset with significant economic potential. We are grateful for the continued support from Sun Valley Investments and our other investors, which enables us to move forward with exploration and development.”
The New Polaris project positions Canagold to capitalize on rising gold prices while contributing to the economic development of northwest British Columbia. The company’s focus on sustainable exploration and strategic financing supports its goal of bringing the high-grade mine into production, enhancing its role in the global gold market.
