ESGold Corp. (CSE: ESAU) (OTCQB: ESAUF) has closed a non-brokered private placement of 5.3 million flow-through shares at $0.85 per share, generating gross proceeds of $4,505,000. The capital will be directed toward exploration activities at the company's Montauban Property in Quebec, with all expenditures qualifying under federal and provincial tax rules. These funds must be incurred by December 31, 2026, and will be renounced to investors no later than December 31, 2025.
The financing structure provides significant tax benefits to Canadian investors through flow-through shares, which allow companies to transfer exploration tax deductions to shareholders. This mechanism has become increasingly important in Canada's mining sector as it incentivizes investment in high-risk exploration activities. Red Cloud Securities acted as finder for the placement, receiving $315,350 in cash fees. All securities issued are subject to a four-month-and-one-day hold period ending April 9, 2026.
ESGold describes itself as a fully permitted, fully funded, pre-production mining company advancing a scalable clean mining model across North and South America. The company's flagship Montauban Gold-Silver Project in Quebec is currently under construction with production anticipated in 2026. This timeline positions the company to potentially benefit from current gold market conditions while implementing its clean mining approach. Additional information about the company's activities can be found at https://ibn.fm/ESAUF.
The company is also advancing a joint venture in Colombia focused on validating one of South America's most prolific gold regions for tailings reprocessing and systematic exploration. This dual-track strategy of pursuing cash flow from near-term production while maintaining exploration for future discoveries represents a balanced approach to growth in the mining sector. The complete press release detailing this financing announcement is available at https://ibn.fm/pRKXo.
For the mining industry, successful financings of this magnitude signal continued investor confidence in precious metals exploration despite broader economic uncertainties. The flow-through structure specifically supports early-stage exploration that might otherwise struggle to secure funding. ESGold's focus on clean mining practices aligns with increasing environmental, social, and governance considerations that are reshaping investment decisions across the resources sector. The company's progress toward 2026 production at Montauban could establish a template for how junior miners balance development timelines with environmental stewardship.
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