Gold Explorer Raises CA$10.7M for Guinea Drilling

Source: Streetwise Reports 04/22/2025

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) raised CA$10.7M in a private placement to support drilling across high-potential permits in Guineas Siguiri Basin. Read more about the strategic backing and exploration momentum.

Sanu Gold Corp. (SANU:CSE; SNGCF:OTCQB; L73:FRA) has closed its previously announced non-brokered private placement, raising gross proceeds of CA$10,703,998 through the issuance of 45,892,860 common shares at CA$0.28 per share. Of this total, 38,228,566 shares were sold for cash proceeds, while 7,664,294 shares were issued through a share exchange with Montage Gold Corp.

Montage Gold Corp. (MAU:TSX.V) participated in the placement alongside AngloGold Ashanti plc and the Lundin Family and associates. All three groups maintained their respective equity interests in Sanu Gold following the transaction—approximately 19.53 percent, 10 percent, and 10 percent. Montage Gold retains rights to increase its stake up to 19.9 percent in a future financing.

Montage Gold’s participation was executed via a share exchange, in which it issued 848,222 Montage shares at a deemed price of CA$2.53 per share. In return, Sanu Gold issued 7,664,294 common shares at the deemed placement price. The transaction had an approximate value of CA$2,146,001.66.

Net proceeds from the offering will fund exploration efforts on the Daina and Diguifara gold permits and the Bantabaye exploration permit, all located in Guinea’s Siguiri Basin. These funds will also support potential acquisitions of new permits and provide general working capital. Total finder’s fees and expenses paid in connection with the placement amounted to CA$375,000. All securities issued are subject to a four-month and one day hold under Canadian securities laws.

Because Montage Gold is a related party under Multilateral Instrument 61-101, its participation constitutes a related party transaction. However, as stated in the news release, the transaction is exempt from formal valuation and minority shareholder approval requirements, as the fair market value of the shares issued and consideration paid did not exceed 25 percent of Sanu Gold’s market capitalization.

Gold’s Momentum Intensifies Amid Global Uncertainty

On April 11, UBS raised its gold price forecast to US$3,500 per ounce, citing what it called a “perfect storm” of macroeconomic and geopolitical catalysts. The UBS editorial team noted that “escalating geopolitical tensions, fears of inflation, and a shifting interest rate outlook” had driven stronger-than-expected demand from exchange-traded funds (ETFs) and speculators. In addition to safe-haven buying, the firm pointed to a more structural reallocation toward gold by global institutions, explaining, “Beijing [was] allowing insurance funds to invest in gold and central banks [were] systematically raising gold’s share of total reserves.” UBS projected central bank purchases would total around 1,000 metric tons in 2025 and revised its ETF demand forecast upward to 450 metric tons.

A day later, on April 12, Shad Marquitz of Excelsior Prosperity described gold as the standout performer during a week marked by financial turbulence. He reported that gold futures had reached a new all-time daily and weekly closing high of US$3,254.90 and added that, “after such a totally wild and woolly week in the markets, it was gold alone that really separated from the rest… to be the shining light and refuge.” Marquitz also noted that gold outperformed despite rising U.S. Treasury yields and a falling U.S. dollar—developments that typically weigh on non-yielding assets like gold. According to his analysis, the 10-year Treasury yield climbed sharply over the week, while the U.S. dollar dropped to a 52-week low of 99.76.

On April 13, Dominic Frisby of The Flying Frisby underscored central bank accumulation as a key driver of gold’s continued rally. He reported that China had purchased 570 tonnes of gold in 2024 and questioned how much more it may have acquired in 2025. “It hasn’t been driven by retail,” he wrote. “Central bank buying has pushed up the price.” Frisby also emphasized the shifting composition of global reserves, noting that gold’s share had risen from 10 percent in the 2000s to 20 percent currently, while the dollar’s share declined from 60 percent to 45 percent. He concluded that “gold is your hedge against government,” positioning it as a neutral asset in an increasingly fragmented global financial system.

On April 14, Global Analyst Adrian Day highlighted broader macroeconomic trends favoring the commodity sector, with gold positioned as a leading asset amid stagflation concerns and market uncertainty. He wrote that “gold, which has actually gained more than the S&P Index over the past four years, will continue to shine: it responds well to uncertainty, whether geopolitical, economic, or monetary.” Day also referenced historical cycles showing that major shifts in the global monetary system often precede strong performance in commodities. He noted that “a major shift in the global monetary system may be imminent,” with gold already responding as a bellwether asset. Day added that “the sector most likely to outperform is the commodity sector, and within that, gold has the best risk-reward profile.”

Looking Ahead: Strategic Momentum in the Siguiri Basin

Sanu Gold continues to build momentum through its active exploration program in Guinea, a top-20 global gold producer and key mining jurisdiction in West Africa. According to the company’s February 2025 investor presentation, up to 10,000 meters of drilling are currently underway across the Daina and Diguifara permits, targeting multiple high-priority gold anomalies.

The Daina Project has already returned promising early-stage results, including 51 meters of 3.11 grams per tonne (g/t) gold, 15 meters of 5.48 g/t gold, and 11 meters of 5.50 g/t gold. These intercepts suggest the presence of high-grade mineralization in oxide zones, with the Daina 2 Main Zone remaining open at depth and along strike.

The Diguifara Project, located just 20 kilometers from AngloGold Ashanti’s 6.2 million ounce Siguiri Mine, is positioned along structural trends consistent with other major discoveries in the basin. Drilling at Diguifara also continues, with up to 5,000 meters planned across several targets.

At the Bantabaye Project, Sanu Gold is following up on previous high-grade results, including 15 meters of 11.4 g/t gold and 3 meters of 9.86 g/t gold. The company reports that mineralization at Bantabaye Target 2 has been identified over at least 500 meters of strike and remains open in all directions. [OWNERSHIP_CHART-10892]

Sanu Gold’s strategic investors, including Montage Gold, AngloGold Ashanti, and the Lundin Family, have remained supportive, as reflected by their pro rata participation in the recent financing. With significant exploration underway and a strengthened cash position, Sanu Gold remains focused on advancing its three core assets in one of Africa’s most prolific gold belts.

Ownership and Share Structure

According to the company’s latest presentation, the largest shareholders now include strategic investors Montage at 19.5%, the Lundin Group at 10%, Anglo Gold Ashanti at 10%, and Capital at 5.6%.

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 and institutional investors. The rest is held by retail investors. 

The market cap for Sanu Gold is CA$150 million with 430.10 million common shares. The 52-week range for the stock is CA$0.03 and CA$0.445. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Important Disclosures:

1. 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.
2. 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, )