Oversubscribed CA$12M Raise Fuels Gold Push in Guinea

Source: Streetwise Reports 03/26/2025

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has closed an oversubscribed CA$12 million private placement to fund expanded exploration across its three core permits in Guinea. Read more about what’s next for the company’s drilling plans.

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has announced that it has upsized its previously announced non-brokered private placement to up to 42,857,143 common shares at a price of CA$0.28 per share, for total gross proceeds of up to CA$12 million. The company also confirmed that the placement was oversubscribed and the book has officially closed.

Montage Gold Corp. and the Lundin Family have indicated their intention to maintain their respective pro rata equity interests in Sanu Gold. Upon completion of the placement, Montage Gold is expected to hold 19.9% of the company’s shares, while the Lundin Family will hold 10%. Under existing investor rights agreements, AngloGold Ashanti is also entitled to participate in the placement on equivalent terms to maintain its pro rata equity stake.

Net proceeds will be used to fund exploration programs at Sanu Gold’s three core assets in Guinea: the Daina, Diguifara, and Bantabaye gold exploration permits. Planned activities include ground geophysics, expansion of drilling operations, and potential acquisition of new permits. The company noted that proceeds may also be used for general working capital purposes. All securities issued will be subject to a four-month and one day hold period under Canadian securities laws.

Certain directors and officers may acquire securities in the placement, as noted in the news release. Any such participation would constitute a related party transaction under Multilateral Instrument 61-101. However, Sanu Gold stated that exemptions from the formal valuation and minority shareholder approval requirements apply, as neither the fair market value of the securities nor the consideration paid will exceed 25% of the company’s market capitalization. The placement remains subject to final approval by the Canadian Securities Exchange.

Gold Sector Gains Ground Amid Record Prices, Institutional Flows, and M&A Momentum

The gold mining sector continued to reflect strong momentum through mid-March, supported by record bullion prices, elevated institutional interest, and increased merger and acquisition activity. On March 17, 321Gold highlighted technical patterns in gold mining equities, specifically referencing the GDX ETF. The commentary stated that the sector had entered “a bullish wave B triangle,” suggesting that “a significant breakout” could be underway as resistance levels around 44.22 were cleared. The same analysis added that within the ongoing rally, “wave C” in the broader pattern had the potential to advance, supported by prior resistance levels being broken. While speculative, the pattern reflected current investor enthusiasm for gold stocks.

On March 18, Stockhead reported that gold had surged past US$3,000 per ounce once again amid rising geopolitical tensions, including military activity in the Middle East. The Australian market responded with notable movement in gold-related equities, as the broader ASX index pulled back but large-cap gold producers saw gains. The article stated that “the price of gold also shot to a new high,” underscoring gold’s appeal as a perceived safe haven during periods of global uncertainty.

Also, on March 18, Kitco published a commentary asserting that institutional investors may have been underestimating gold miners’ potential amid stagflation fears and heavy tariff activity. Stewart Thomson wrote that “gold stocks are poised to get an ongoing institutional tidal wave of capital,” citing historical patterns during the 1970s when stagflationary pressures led money managers to rotate out of traditional equities and into the mining sector. Thomson suggested that institutional constraints preventing direct bullion purchases could push additional capital toward publicly traded miners.

Two days later, on March 20, Excelsior Prosperity offered a technical review of gold’s price movement, noting that on March 19, gold had touched another all-time high of US$3,061.60 and closed at US$3,041.20. The report emphasized that gold remained in a “bullish posture,” with the price still well above the 50-day exponential moving average. Though the publication acknowledged the potential for short-term technical corrections, it concluded that “gold and the gold stocks have been shining brightly,” signaling the sector’s resilience despite minor pullbacks.

Finally, on March 24, Fundamental Research Group contextualized a major takeover rejection in the gold mining space, indicating that corporate valuations had not kept pace with gold’s rising price. The analysts wrote that “gold prices hitting record highs above US$3,000/oz this month” had fueled a new wave of M&A activity. They noted that a rejected bid at a 21% premium still fell short of sector valuation benchmarks, implying a broader industry trend of undervaluation for gold equities relative to their intrinsic asset value.

Sanu Gold: Advancing High-Grade Gold Discoveries in West Africa

As outlined in its current Investor Presentation, Sanu Gold’s exploration focus is centered on Guinea’s Siguiri Basin, a prolific gold-producing region that hosts several multi-million-ounce deposits. The company’s three exploration permits- Daina, Diguifara, and Bantabaye — are located in close proximity to producing mines operated by AngloGold Ashanti, Nordgold, and others.

At Daina and Diguifara, Sanu Gold is currently executing a drill program of up to 10,000 meters, targeting five to seven priority areas with as many as 120 holes. Recent drilling at Daina has returned notable results, including 51 meters of 3.11 grams per tonne (g/t) gold, 21 meters of 4.75 g/t gold, and 15 meters of 5.48 g/t gold. The Daina 2 Main Zone remains open along strike and at depth, with geophysical extensions underway to refine targeting.

The Diguifara project, located approximately 20 kilometers from AngloGold Ashanti’s 6.2 million ounce Siguiri Mine, is also in the midst of drilling. Auger and surface sampling have confirmed extensive gold anomalies, and structural similarities with nearby high-grade systems support its exploration potential. [OWNERSHIP_CHART-10892]

Meanwhile, the Bantabaye permit continues to return high-grade intercepts, including 15 meters of 11.4 g/t gold and 14 meters of 1.5 g/t gold. Target 2 at Bantabaye is mineralized over a strike length of at least 500 meters and remains open in all directions.

The company’s leadership team has significant experience across West African gold projects, and Sanu Gold remains strategically positioned in a region undergoing major infrastructure development, including new highways, railways, and port access. With drill programs active and strong backing from institutional investors, Sanu Gold is progressing toward a more advanced stage of exploration in one of the world’s key emerging gold jurisdictions.

Ownership and Share Structure

According to the company’s latest presentation, the largest shareholders now include strategic investors Montage at 19.9%, the Lundin Group at 10%, Anglo Gold Ashanti at 10%, and Capital at 6%.

Institutional investors include Scotia Global Asset Management, US Global Investors, Lowell Resources Funds Management, and Palos Management, which collectively make up 17% of the shareholders.

Management, founders, and insiders own around 11%, with another 22% being held by high-net-worth individuals. The rest is held by retail investors. 

The market cap for Sanu Gold is CA$100 million with 383.5 million common shares. The 52-week range for the stock is CA$0.03 and CA$0.29.

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Important Disclosures:

1. Sanu Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Sanu Gold Corp.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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( Companies Mentioned: SANU:CSE;SNGCF:OTCQB;L73:FRA, )

Source: https://www.streetwisereports.com/article/2025/03/26/oversubscribed-ca-12m-raise-fuels-gold-push-in-guinea.html