07:54 AM EDT, 04/03/2025 (MT Newswires) -- GFG Resources ( GFGSF ) said on Thursday that it is raising $2.5 million in a private placement, with Alamos Gold ( AGI ) committed to participating to maintain its 10.8% stake in the company.

"With the support of our largest shareholder, the current financing enables us to step-up our exploration efforts and leverage cost-effective flow-through capital," said Brian Skanderbeg, GFG's president and CEO. "Upon completion of this financing, GFG will be in a very strong financial position, allowing us to continue to capitalize on opportunities and build value for our shareholders."

The offering will comprise up to 9.2 million premium units at $0.2717 apiece. Each unit consists of one share and one-half of a warrant. Each whole warrant is exercisable at $0.28 per share for 24 months.

Closing is scheduled on or about May 2.

GFG operates three gold projects in Ontario's Timmins gold camp.

GFG's share price jumped 5% on Wednesday to $0.21 on the TSXV.