Equity Financing Upsized Amid Strong Demand as Gold Prices Surge
Dryden Gold Corp. (TSXV:DRY; OTC:DRYGF) has announced the upsizing of its previously disclosed equity financing due to higher-than-expected demand. Read about how the shares will be offered and what the funds will be used for.
Dryden Gold Corp. (TSXV:DRY; OTC:DRYGF) has announced the upsizing of its previously disclosed equity financing due to higher-than-expected demand. A maximum of 27,000,000 shares, including flow-through common shares (FT Shares), charity flow-through units (CFT Units), and hard dollar units (HD Units), will now be offered through the upsized non-brokered financing. FT Shares will be offered at US$0.13 per share, with CFT Units, consisting of one FT Share and one-half of a common share purchase warrant, will be offered at US$0.15 per unit. Those with warrants will be able to purchase an additional common share at an exercise price of US$0.18 per share for a period of 24 months. The HD Units will be offered at $.11 and will consist of one common Share of the Company and one-half of one Warrant. The combined maximum aggregate proceeds from the financing could reach up to US$3.5 million.
The FT Shares and CFT Units proceeds will go towards resource exploration on Dryden Gold's property in Ontario. The HD Units funds will be used for general corporate purposes, pending TSX Venture Exchange approval. Dryden expects insider financing participation through HD Unit subscriptions.
Digging Into Gold
Prices have risen significantly in the gold market. Gold has gained traction in recent months, and it is often seen as a hedge against economic and geopolitical uncertainty. This increase has created new opportunities for companies like Dryden Gold Corp. Goldman Sachs analysts, as quoted by Yahoo! Finance on September 3, said, "Investors should 'go for gold' as the precious metal's stellar run isn't over."
Gold prices have also benefited from recent market conditions. This, in turn, has led to increased investor interest in gold equities, such as Dryden Gold.
As Frank Holmes wrote for US Global Investors on September 3, "Gold stocks . . . offer not just a hedge but also a means of participating in the upside of gold prices." It went on to add that these stocks offer a mix of "low valuations and high potential returns."
According to a report by Reuters on September 5, "Gold prices rose to near one-week highs on Thursday, on the back of a weaker U.S. dollar and lower yields." Spot gold increased 0.9% to US$2,515.93 per ounce as ongoing market dynamics pushed prices toward record levels.
In more good news for the sector, UBS predicted that gold could reach US$2,700 per ounce in 2025. Other analysts from Citigroup, Goldman Sachs, and Bank of America forecasted that gold may even go to US$3,000.
Streetwise Ownership Overview*
Dryden Gold Corp. (TSXV:DRY; OTC:DRYGF)
*Share Structureas of 8/14/2024Source: Dryden GoldDryden's Catalysts
According to the company's investor presentation, Dryden Gold Corp. holds a significant strategic land position in the Dryden Gold District. Known for its excellent infrastructure, including access to major roads and power, the district consists of over 600 km? of consolidated land.
Dryden's explorations in the region have already produced high-grade drill results, including a recent intercept of 14.10 g/t gold over 7.54 meters and 53.51 g/t gold over 1.05 meters. These discoveries highlight the potential for further high-grade gold finds within the region.
Currently, Dryden's exploration focus is on expanding its high-grade gold systems, with recent drilling successes affirming the presence of mineralized zones. These factors, along with Dryden Gold's favorable geological setting, position the company for further success and potential mergers and acquisitions opportunities.
Ownership and Share Structure
According to Refinitiv, Stategic entities own 15.27% of Dryden with Alamos Gold Inc. (AGI:TSX; AGI:NYSE) has an almost 15.4% stake in it, Eric Sprott owns 4.26%, Rob McEwen owns 3.55%, and other important stakeholders including management and insiders own 11.87%. Less than half of the 93.89 million shares are available to retail investors.
According to Reuters, Euro Pacific Asset Management also owns about 8.48% of the company.
Its market cap is CA$10.33 million, and it trades in a 52-week range of CA$0.40 and CA$0.10.
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Important Disclosures:
Dryden Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own Dryden Gold Corp securities.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.