04:25 PM EDT, 05/02/2025 (MT Newswires) -- GFG Resources ( GFGSF ) said shortly before the close of trade Friday that it has completed a private placement for gross proceeds of C$3 million, with Alamos Gold Inc. ( AGI ) purchasing securities that sees it continue to hold an interest in the company.

Shares in GFG edged up $0.005 to $0.205 today, leaving it shy of a 52 week high $0.225.

Brian Skanderbeg, President and CEO, in Friday's statement said, "This successful financing, along with the continued support from Alamos, is a testament to our long term strategy, strong asset base, and promising growth prospects. With a strong cash position, we have the capability to sustain our aggressive exploration strategy, with a focus on advancing the Aljo Gold Project to resource stage and making the next significant gold discovery in the world class Timmins Gold District through strategic growth and innovation."

He added: "In the coming months, we are excited to receive and publish the results from the recently completed drill programs at the Aljo Gold Project and the Muskego and Chabot gold targets. These results will provide valuable insights as we continue to drive our exploration efforts forward and strive to unlock the full potential of our assets."

For the offering, GFG issued more than 11 million flow-through units at C$0.2717 each. Each unit includes one common share and one warrant, allowing the holder to buy an additional share at C$0.28 over a two year period.

Alamos Gold ( AGI ) purchased near 1.4 million units and now owns a 10.8% stake in GFG. If Alamos exercises all of its warrants, it would own 11.3% of GFG.

Part of the financing was conducted under a special exemption, meaning 2 million units are not subject to resale restrictions. The rest are under a hold period until Sept. 3, the company added.

Additionally, GFG issued 111,111 shares to the Apitipi Anicinapek Nation as part of an exploration agreement. These shares are also under a hold period until Sept 3, the company said.