Scorpio Gold closes $8 million private placement for Nevada project

Published 03/09/2025, 22:58
Scorpio Gold closes $8 million private placement for Nevada project

VANCOUVER - Scorpio Gold Corporation (TSXV:SGN) (OTCQB:SRCRF) announced Wednesday it has closed an $8 million non-brokered private placement through the issuance of 32 million common shares at $0.25 per share. The company’s stock has shown remarkable momentum, delivering a 380% return over the past six months and currently trading near its 52-week high of $0.34.

The financing was primarily backed by prominent mining investors, with Ross Beaty contributing $4.4 million, Eric Sprott investing $3 million, and four members of the Lumina Group providing $600,000. The company paid $90,000 in cash finder’s fees. According to InvestingPro analysis, Scorpio Gold operates with a moderate debt level, though its current ratio of 0.47 indicates potential liquidity challenges.

Scorpio Gold plans to use the proceeds to advance exploration and development at its Manhattan District Project in Nevada and for general corporate purposes. All securities issued in the financing are subject to a four-month plus one-day hold period in accordance with Canadian securities laws.

The transaction remains subject to final approval from the TSX Venture Exchange.

Scorpio Gold holds a 100% interest in the Manhattan Mine, a past-producing site located in Nevada’s Walker Lane Trend. The company’s Manhattan District includes the Goldwedge Project with a 400-ton per day gravity mill and the adjacent 4,300-acre Manhattan Project, which was acquired from Kinross in 2021.

The information in this article is based on a company press release statement.

In other recent news, Scorpio Gold Corporation has completed the sale of its Mineral Ridge project in Nevada. The transaction was finalized for $7.5 million in cash. This sale was conducted through Scorpio Gold’s wholly-owned subsidiary, Scorpio Gold (US) Corporation. The deal includes all membership interests in Mineral Ridge Gold, LLC, along with related unpatented mining claims in Esmeralda County, Nevada. This development marks a significant move for Scorpio Gold as it divests from this particular asset. No further details about the buyer were disclosed. These recent developments may interest investors looking at Scorpio Gold’s strategic decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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