US Gold Corp (NASDAQ:USAU) is set to start 2025 work on its CK Gold project in Wyoming with another $10.2 million in the bank.
"We now have the means to carry the Company closer to funding the development of the CK Gold Project," CEO George Bee told shareholders.
Bee said that the company has deliberately simplified the project to give it an expedited pathway to approval.
"There are also significant areas of upside and opportunity building upon what we believe is already a robust copper and gold project," the CEO added. "The focus for now is advancing toward development, highlighting the potential of additional opportunities and securing the best terms possible for project financing that will protect the investment made by our shareholders."
The registered direct offering raised approximately $10.2 million through the sale of 1.46 million shares of its common stock at $7 per share, alongside warrants to purchase nearly 730,000 shares at an exercise price of $9.50 per share.
The offering, which was not facilitated by a placement agent, saw the company's management team work closely with several entities to engage with the investment community. The project recently achieved full, unconditional approval for development, having secured its Air Quality Permit from the Wyoming Department of Environmental Quality.
The capital raise strengthens U.S. Gold's financial position as it progresses toward key milestones for the CK Gold Project, which include the publication of an updated Prefeasibility Study (PFS) in early 2025, followed by a final Feasibility Study (FS). The company is also exploring financing opportunities with interested parties for the project's development.
"At a time when there are very few permitted projects in the pipeline ready to meet the growing demand for gold and copper production, we believe the importance of what the U.S. Gold team has accomplished is finally becoming recognized," chairman Luke Norman said.
U.S. Gold also emphasized its commitment to broadening its investor base, recently hosting site visits for Canadian analysts from Paradigm Consulting Group, Haywood Securities, and Velocity Trade Capital. The company is considering a potential listing on a Canadian exchange to attract additional investment interest from the resource sector.
U.S. Gold Corp. is advancing its exploration and development goals with a solid financial base and is positioned to move forward with the CK Gold Project, which could see development begin as early as the end of 2025, subject to financing.