G2 Goldfields has raised C$42 million ($31 million) through a non-brokered private placement, selling approximately 29 million of its shares at C$1.45 each. The funds will be used primarily for advancing exploration at the company’s Oko West gold project, located in the Cuyuni-Mazaruni region, an area rich in gold potential.
The financing, expected to close on August 4, pending regulatory approval, was cited as a significant step for G2 Goldfields as it seeks to expand its operations in the Oko-Aremu district. The Oko West project is situated roughly 95 kilometers west of Georgetown, in proximity to the Oko gold district.
Initial drilling at Oko West has already confirmed substantial gold mineralization, particularly within the northern part of the Kairuni zone, a 6-kilometer-long gold-in-soil geochemical anomaly.
In June 2023, a resource estimate provided promising figures, which were further bolstered by a subsequent update earlier this year, highlighting the project’s growing potential.
A notable portion of the private placement was purchased by AngloGold Ashanti, acquiring approximately 9 million shares. This acquisition will increase AngloGold’s stake in G2 Goldfields to approximately 15%, up from 12.8%. The remaining shares were acquired by a single European investor.
Patrick Sheridan, G2 Goldfields’ Executive Chairman, emphasized the strategic importance of this capital influx. “On closing, G2 will have about C$55 million in working capital,” Sheridan noted. “This enhanced working capital position will enable the company to expedite and continue to expand its current exploration program in the Oko-Aremu district,” he added.
The Oko Main zone within the project area is particularly noteworthy, containing an NI 43-101-compliant indicated resource of 2.4 million tonnes grading 9.03 grams per tonne (g/t) gold, translating to 686,000 ounces (oz) of gold. Additionally, the inferred resource stands at 2.4 million tonnes at 6.38 g/t gold, amounting to 495,000 oz.
G2 Goldfields has also identified several other promising zones in the vicinity. The Aremu mine, historically producing 6,488 oz of gold from 1906 to 1911, is among these. The Ghanie zone, located south of the Oko Main zone, holds an indicated resource of 3.3 million tonnes at 2.20 g/t gold, containing 236,000 oz, and an inferred resource of 12.2 million tonnes at 1.54 g/t gold, containing 604,000 oz.
These resource figures include both open-pit and underground mining potentials, further enhancing the project’s attractiveness. In addition to the Oko Main and Ghanie zones, G2 has been actively drilling in the Oko North and Oko Northwest areas, aiming to uncover further resources.
G2 Goldfields also said it is working towards earning a 100% interest in the Oko district project, with an updated resource estimate expected later this year.
The company said its continued exploration and development efforts at Oko West underscore its commitment to advancing its portfolio and delivering value to shareholders.
