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TSX-V-listed advanced stage exploration and development company Troilus Gold has closed a C$11.5-million private placement with the government of Quebec, through Investissement Québec (IQ).

Quebec purchased an aggregate of 10.14-million units at a price of C$1.10 an unit, each comprising one common share in the capital of the company and one-half of one common share purchase warrant.

The company will use the net proceeds of the offering to continue engineering efforts and feasibility level studies for its Troilus gold project and for working capital and general corporate purposes.

“This initial investment, coupled with the continued support of the Fonds de solidarité FTQ, has placed the company on incredibly solid footing as we progress through continued feasibility and pre-development work at our project,” says president and CEO Justin Reid.

The Troilus project is a past producing mine, which operated from 1996 to 2010, producing more than two-million ounces of gold and nearly 70 000 t of copper.

The preliminary economic assessment that Troilus completed for the project supports a combined openpit and underground mining scenario with low initial capital costs and high rate of return for a 35 000 t/d operation over a 22-year mine life.

Finance, Economy and Innovation Minister Eric Girard says government is backing Troilus to carry out the gold project, as the government believes that the mining industry is key to the sustainable recovery of Quebec’s economy.