ONGold completes $9.3 million private placement financing

ONGold Resources Ltd. (TSXV: ONAU) (OTCQB: ONGRF) completed a private placement financing that raised C$9.3 million in gross proceeds, according to a company statement.

The offering consisted of three types of shares: 2.59 million Ontario flow-through shares priced at C$0.965 each for C$2.5 million, 3.74 million Manitoba flow-through shares at C$1.095 each for C$4.1 million, and 3.97 million common shares at C$0.68 each for C$2.7 million.

Paradigm Capital Inc. served as lead underwriter and sole bookrunner, with Cormark Securities Inc. and Agentis Capital Partners participating in the underwriting syndicate. The company paid a 6% cash commission to underwriters and issued 309,168 compensation options exercisable at C$0.68 per share for 24 months.

ONGold will use proceeds from flow-through shares to incur eligible Canadian exploration expenses by December 31, 2026, with expenditures renounced to subscribers by December 31, 2025. The company plans to apply net proceeds from common shares toward working capital and general corporate purposes.

Company insiders participated in the offering, constituting a related party transaction under regulatory requirements. ONGold relied on exemptions from formal valuation and minority shareholder approval requirements since the transaction value remained below 25% of the company's market capitalization.

The offering remains subject to final approval from the TSX Venture Exchange. ONGold owns exploration assets in Northern Ontario and Northern Manitoba, including the Monument Bay Gold-Tungsten Project and other properties.

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