Canagold Resources Ltd.

Raised C$4.0 million split evenly between charity flow-through shares at C$0.43 and ordinary shares at C$0.39, issuing 9,779,368 shares in total. Prices are the highest of any raise in the cached record, three weeks after the feasibility study.

capital raising announcement

The feasibility study - the first study for New Polaris with actual reserves rather than a conceptual mine plan - gave an after-tax net present value of C$425 million and a 30.9% return at US$2,500 gold, or C$793 million and 47.3% at the then-spot US$3,300, on pre-production capital of only C$250 million. The mine is an underground operation averaging 9.94 g/t diluted over life, containing 904,000 ounces of gold and recovering 805,589, at an all-in sustaining cost of US$1,247 an ounce. For comparison the 2019 conceptual study showed a 56% return, but at a US$1,500 gold price and without reserves or a stated capital figure in this release.

resource reserve update

The B.C. Environmental Assessment Office issued a process order moving New Polaris into the Application Development and Review phase, where Canagold will prepare its application for an Environmental Assessment Certificate. This advances the assessment begun with the March 2023 project description, but it is a step in the process, not an approval, and the release gives no dates.

regulatory community update

Flagged antimony as a second product at New Polaris. Metallurgical work done in 2022 on a 700 kg composite averaging 0.44% antimony, not optimised for antimony recovery, still recovered 92% of it into the gold concentrate at 3.07% antimony. Antimony is a critical mineral in Canada, the US and the EU and its price rose sharply in 2024 after Chinese export restrictions. The company says adding it changes neither permitting nor the mine schedule - so this is a possible revenue addition, not yet a quantified one.

other

The final two holes closed out the North Zone expansion programme with 10.8 g/t gold over 4.3 metres and 10.4 g/t over 3.6 metres in NP24-34 and 14.1 g/t over 1.1 metres in NP24-33A - a weaker finish than the middle of the programme. All assays are now in and the company is modelling the new shallow mineralisation for a possible resource addition.

drilling progress report

Twenty-six more North Zone holes: 20.2 g/t gold over 4.4 metres in NP24-09, 18.3 g/t over 4.5 metres in NP24-28, 14.9 g/t over 2.1 metres in NP24-11, and a wider 9.4 g/t over 9.8 metres also in NP24-09. Grades and widths in line with the first five holes, all at shallow depth.

drilling result

The first five holes of a resource-expansion programme in the North Zone - new ground rather than infill - all hit: 14.5 g/t gold over 3.8 metres and 12.9 g/t over 3.8 metres in NP24-01, 10.6 g/t over 5.0 metres in NP24-02, 13.2 g/t over 2.6 metres within 8.6 g/t over 9.8 metres in NP24-04, and 12.3 g/t over 3.6 metres plus 12.9 g/t over 4.6 metres in NP24-05. Shallow, from 75 to 230 metres down hole.

drilling result

Closed a C$4.12 million charity flow-through financing entirely with Sun Valley Investments - 15,700,000 shares at C$0.2625 - for New Polaris exploration. Sun Valley is now not just the largest holder but the sole source of this round.

capital raising announcement

Raised C$4.41 million issuing 21,000,000 shares at C$0.21, with two insiders among the subscribers. The price is 20% above the C$0.175 rights offering seven months earlier but a fraction of the C$0.50 flow-through price of late 2021.

capital raising announcement

The updated resource estimate delivered what the drilling was for: indicated resources of 2.97 million tonnes at 11.6 g/t gold for 1.11 million ounces, an 89% increase in indicated ounces on the 2019 study, with inferred at 0.93 million tonnes at 8.93 g/t for 0.27 million ounces. Tonnage rose 23% on the new veins found by the 2021-22 infill drilling and the indicated grade improved 8% to 11.61 g/t from 10.8. Crossing one million indicated ounces is what the feasibility study needed.

resource reserve update

Canagold filed its Initial Project Description with the B.C. Environmental Assessment Office for New Polaris, formally starting the provincial environmental assessment (the Early Engagement phase). This opens the permitting process the company needs before it can build a mine; the filing gives no timeline or approval and notes the Taku River Tlingit First Nation's input.

regulatory community update

Twenty-one holes from a 9,000-metre programme confirmed high grade near surface in the Y-vein system, a shallower target than the C veins: 53.8 g/t gold over 2.78 metres (2.03 metres true width) from only 63.9 metres down hole P22Y10, 9.64 g/t over 7.14 metres (5.66 true) in P22Y09, and 18.0 g/t over 5.64 metres in a vein that was not in the model at all. The Y19 and Y20 veins now run 300 metres of strike, open north and south, and the company says the results fit the 2019 study's mine plan parameters.

drilling result

Signed the Ha Khustiyxh ("Our Way") agreement with the Taku River Tlingit First Nation, in whose territory New Polaris sits, setting a framework for exploration and laying the ground for the longer-term agreements that permitting, construction and production will each require. For a project on the Taku River this is a precondition, not a courtesy.

material agreement

The rights offering closed fully subscribed but only because of the backstop: shareholders took 25,277,221 shares at C$0.175 for C$4.42 million, a 55% take-up, and Sun Valley absorbed the remaining 20,352,577 shares under its standby guarantee. Sun Valley therefore financed nearly half of it and moved further above the 20% control threshold shareholders had approved in October.

capital raising announcement

Launched a rights offering to all shareholders rather than a placement, positioned as the fairest way to fund the feasibility study and permitting. Sun Valley, now an insider, is providing a standby guarantee - which means whatever ordinary shareholders do not take up, Sun Valley does, and its stake rises accordingly.

capital raising announcement

Two things in one release. Shareholders at the special meeting approved, by 97.5% of the 20% of shares voted, letting Sun Valley Investments go above 20% of the company - formally creating a new control person out of the shareholder who had run the proxy fight three months earlier. The C$1.5 million charity flow-through financing announced on 1 September closed alongside it.

capital raising announcement

Retained Ausenco to run the New Polaris feasibility study, with a brief that includes rebuilding the resource model to take in the 30,000-plus metres drilled since 2021 and, for the first time, calculating mining reserves. Announced under the new CEO Catalin Kilofliski, five weeks after the board change.

resource reserve update

Arranged up to C$4 million: a C$1.5 million charity flow-through at a premium to market, plus a C$2.5 million unsecured interim credit facility from Sun Valley at 5.5%. Sun Valley is expected to take part in the flow-through too and go above 20%, which requires a special shareholder meeting to approve the change of control. Three months after fighting SunValley in a proxy contest, the company is funding itself from the same party.

other

Put the New Polaris feasibility study out to tender among seven engineering firms. The release restates the 2019 preliminary economic assessment - US$1,500 gold, US$400 an ounce cash costs, after-tax net present value C$469 million, 56% return, indicated resource 586,000 ounces at a 4 g/t cut-off - as the basis for going to feasibility.

resource reserve update

The final four holes of the 54-hole, 30,000-metre programme gave its two best results: 34.4 g/t gold over 6.6 metres in hole 21-1700E3, including 646 g/t over 0.3 metres, and a combined 13.6 g/t over 25.1 metres in hole 21-1800E3. Visible gold meant metallic screen fire assay was used.

drilling result

Named the dissident as SunValley Company DMCC of Dubai and its managing director Vikram Sodhi, and accused it of trying to seize the board and the New Polaris project without paying shareholders a premium. Proxy fights of this shape are usually about control of an asset rather than about governance.

other

A minority shareholder based in Dubai nominated three of five directors in an attempt to take control of the board. Management called it a hijacking and asked shareholders to vote its own slate on the yellow proxy at the 19 July annual and special meeting. The first public sign of a control fight over New Polaris.

other

Seven holes returned intercepts in three veins including, for the first time, a new vein below the 600-metre limit of the current resource: hole 22-1844E2W1A gave 7.54 g/t gold over 18.6 metres down-hole in that new vein, along with 7.41 g/t over 3.5 metres in C-10 and 7.70 g/t over 2.2 metres in the main vein. Hole 22-1844E2W2A returned 5.27 g/t over 22.6 metres in C-10 and 16.0 g/t over 6.1 metres in the main vein. A new vein deeper than anything modelled is a genuine addition, not infill.

drilling result

Six more holes, including 42.5 g/t gold over 2.0 metres in hole 22-1665E1 with 69.7 g/t over 0.8 metres inside it - drilled into a known gap in the resource model rather than into existing blocks, so it fills a hole in the model rather than extending it. Also 19.3 g/t over 4.3 metres in 21-1675E1A and 10.4 g/t over 5.8 metres in 21-1755E1.

drilling result

Five more infill holes in the C-West Main vein, two of them with visible gold. Hole 21-1700E1A returned 20.7 g/t gold over 3.8 metres including 38.1 g/t over 1.8 metres, 21-1725E1 gave 27.1 g/t over 2.9 metres, 21-1750E1 13.5 g/t over 8.0 metres, and 21-1715E1 8.79 g/t over 3.5 metres. These are infill holes inside a known vein, drilled to move inferred material into the indicated category rather than to find anything new.

drilling result

Infill drilling for the 24,000-metre, 47-hole programme found two hanging-wall veins, C-9 and C-10, sitting outside the C-West Main vein that holds almost all of the current resource. Nine C-9 and thirteen C-10 intercepts are now known, counting 1995 and 2006 holes: hole 21-1905E2 gave 11.1 g/t gold over 17.8 metres down-hole, one of the widest intervals ever drilled at New Polaris, and 21-1890E1 17.1 g/t over 8.4 metres. True widths have not been calculated because the vein attitude is not yet resolved, and neither vein is in the resource.

drilling result

A year-in-review release rather than fresh assays. Canarc renamed itself Canagold, consolidated its shares five to one, raised C$8.4 million and updated the New Polaris economics to a US$333 million after-tax net present value and 56% return at US$1,500 gold. It also closed out two failures: Hard Cash returned only narrow low-grade gold and the option was terminated, and at Windfall Hills the best 2020 holes were 0.75 g/t gold-equivalent over 33 metres and 0.25 g/t over 78 metres, with the company saying it may seek a partner rather than continue alone. The Princeton earn-in right was sold to Damara Gold for 9.9% of Damara.

drilling result

Received a multi-year exploration permit from the BC ministry for New Polaris and readied the existing camp - bunkhouses, kitchen, core shack - for environmental baseline work and the infill drilling needed to move toward a feasibility study. The permit is the gate that lets the whole New Polaris programme start.

drilling progress report

Closed the second and final C$5.2 million tranche - 65 million units at C$0.08 - completing the C$8.4 million raise, with Eric Sprott as lead investor and Chairman Bradford Cooke taking 2.0 million units on top of 3.0 million in the first tranche to hold his roughly 4% stake. The company issued 105 million units in total at eight cents, a very heavy dilution, but it now has money for New Polaris.

capital raising announcement

Closed the first C$3.2 million tranche of a private placement: 40 million units at C$0.08, each unit one share plus half a warrant exercisable at C$0.13 for two years, accelerable if the shares trade at C$0.20 for ten days. Eight cents a unit is the price at which this company could raise money in 2020.

capital raising announcement

Filed the NI 43-101 technical report for the 2019 preliminary economic assessment of the New Polaris gold project in northwestern British Columbia, effective February 28, 2019 and prepared by Moose Mountain Technical Services. It carries the 586,000 oz indicated resource at a 4 g/t cut-off, and as a PEA it is conceptual.

resource reserve update