07:35 AM EDT, 04/28/2025 (MT Newswires) -- Palisades Goldcorp ( PLGDF ) , an investment company in the resource sector, that saw its shares lose more than 3% and drop nearer to 52 week lows on Friday, over the weekend announced it plans to complete a non-brokered private placement of secured convertible notes for aggregate gross proceeds of US$6 million.

A statement noted that two notes, each in the principal amount of US$3 million, will be issued by the company and will accumulate interest at 10% per annum payable every six months. Contingent upon the agreement of the company and holder, the interest payment may be payable in shares of the company.

The notes are convertible at C$1.50 per share at any time prior to maturity and the company has the option to repay the notes prior to maturity without penalty. The company expects the offering to close within 21 days.

The company said that the notes will be issued to a significant shareholder of the company and if the conversion of the notes result in the holder becoming a greater than 19.9% shareholder of Palisades, the company will be required to seek prior approval of the TSX Venture Exchange and disinterested shareholders of the company.

The company also added that if Palisades ceases to hold at least 20% of the issued and outstanding shares of New Found Gold ( NFGC ) , both notes will be secured by 13.3 million New Found Gold ( NFGC ) shares.

Palisades holds a 21.62% interest in New Found Gold ( NFGC ).

The company plans to use the net proceeds from the notes for working capital purposes.

"This US$6 million cash injection comes from a major shareholder and further strengthens our liquidity for future deal flow. This comes at a time when we see a major disconnect between the prices of junior gold and silver equities and the underlying commodities. This transaction is accretive to our shareholders as we aim to increase our exposure to future investments while minimizing dilution at current market prices. I am thankful for the continued support from our large existing shareholder who shares in management's vision for Palisades," said Palisades' Chief Executive Officer Collin Kettell.