U.S. Gold Corp. (NASDAQ: USAU) completed a private placement that raised approximately $31.2 million in gross proceeds. The transaction involved issuing 1,922,159 shares of common stock at $16.25 per share and warrants to purchase an additional 961,077 shares at an exercise price of $23.00. The warrants are immediately exercisable and expire two years from issuance.
The offering was executed under a securities purchase agreement with a group of investors that included Franklin Templeton Investments, Mackenzie Investments, and Libra Advisors. The net proceeds will be directed toward initial development costs at the company’s CK Gold Project in Wyoming, potential land acquisitions, further exploration of its other properties, and general working capital.
The CK Gold Project is a permitted, shovel‑ready gold mine that has completed a Preliminary Feasibility Study showing a pre‑tax NPV of $459 million and a 36% internal rate of return. The financing is intended to bridge the funding gap that has been a concern in recent filings, allowing the company to move the project from permitting into construction and production phases.
The share issuance represents a significant dilution for existing shareholders, and the offering price of $16.25 is roughly 4% below the closing price on December 15, 2025. Investors have reacted negatively, citing the dilution and discount as primary concerns.
CEO George Bee emphasized the strategic importance of the CK Gold Project, noting that the updated feasibility study demonstrates a “very robust, high‑value project poised for the next stages of engineering and development.” He added that the capital raise will accelerate the company’s development timeline and strengthen its balance sheet.
The private placement is a material financing event that underscores U.S. Gold’s need for capital to advance its flagship project while managing the risks associated with exploration and development. The infusion of funds positions the company to pursue construction milestones and potentially bring the CK Gold Project closer to production, which could materially impact its long‑term value proposition.
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