G2 Goldfields to raise $31 million for Oko project in Guyana

G2 Goldfields (TSXV: GTWO) has launched a C$42 million ($31m) non-brokered private placement with the sale of approximately 29 million shares at a price of C$1.45 each.

The proceeds will be used primarily to advance exploration at the company’s Oko gold project in Guyana. The offer is expected to close on Aug. 4, subject to regulatory approval.

AngloGold Ashanti is purchasing about 9 million shares and a single European investor is picking up the remainder. Upon closing, AngloGold’s interest in G2 will rise to approximately 15% from 12.8%.

On closing, G2 will have about C$55 million in working capital, executive chair Patrick Sheridan said in a release. “This enhanced working capital position will enable the company to expedite and continue to expand its current exploration program in the Oko-Aremu district.”

The Oko Main zone contains an NI 43-101-compliant indicated resource of 2.4 million tonnes grading 9.03 g/t gold, containing 686,000 oz. The inferred resource is 2.4 million tonnes at 6.38 g/t gold, containing 495,000 oz.

G2 has targeted several other potential zones in the area, including the Aremu mine that produced 6,488 oz. of gold from 1906 to 1911. There are also resources for the Ghanie zone south of the Oko Main zone. This indicated resource is 3.3 million indicated tonnes at 2.20 g/t, containing 236,000 oz. The Ghanie inferred resource is 12.2 million tonnes at 1.54 g/t gold, containing 604,000 oz.

Resource numbers include both open pit and underground potentials. The company has also been drilling the Oko North and Oko Northwest areas.

G2 is earning a 100% interest in the Oko district project. An updated resource estimate is due later this year.