12:10 PM EDT, 04/03/2025 (MT Newswires) -- (Updates shares.)

GFG Resources ( GFGSF ) on Thursday said 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 chief executive Brian Skanderbeg. "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 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 shares were last seen down $0.02 to $0.19 on the TSX Venture Exchange.

Price: 0.19, Change: -0.02, Percent Change: -9.52