Fortitude Gold Corp (OTCMKTS: FTCO) has raised US$12 million through a private placement of 2.52 million shares at US$4.75 apiece. The deal closed on Feb. 18.
Fortitude will be deploying the funds to accelerate development of its County Line and Scarlet South mines while restarting exploration drilling. The new capital injection will help offset Biden-era permit delays, optimize the construction process at two new producing mines and position should help the company to capitalize on high gold prices through near-term production and resource expansion.
“With this exceptional and unprecedented gold price environment, time is of the essence to capitalize on selling as much gold as possible,” said chief executive Jason Reid.
Analysts note the funding unlocks expansion potential at both pits plus the Scarlet North area on the flagship Isabella Pearl property. On the downside, the placement dilutes existing shareholders by about 9.4 per cent and incurs US$316,266 in placement agent fees.
Earlier cost-cutting initiatives by Fortitude had suspended drill programs, which would have faced further delays without this capital injection.
Investment follows BLM assent in January
This latest private placement builds on a significant permitting success last month. Fortitude secured Bureau of Land Management permits and launched production at both the County Line and Scarlet South mines.
Scarlet South operates as the second open pit on the flagship Isabella Pearl property, only half a kilometre from existing infrastructure that has already produced more than 165,000 ounces of gold since 2019.
All ore from the three sites feeds the central Isabella Pearl processing facility. The mining firm is currently planning near-term permitting for a third pit at Scarlet North.
Read more: NevGold discovers transformational oxide gold-antimony structure at Limousine Butte
Record gold prices attract attention to Nevada producers, juniors
Skyrocketing gold prices above US$5,000 per ounce have reshaped Nevada’s mining sector and pulled in fresh investment.
Producers like Fortitude, Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) and SSR Mining Inc (NASDAQ: SSRM) enjoy fatter margins that justify rapid mine builds and aggressive drilling. Regulatory delays have become temporary hurdles rather than roadblocks.
Juniors across the state are also capturing attention through consistent drill success and advancement.
NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is pushing forward at Limousine Butte with high-grade oxide gold-antimony zones tied to the newly identified Armory Fault structure, positioning the project for an initial resource estimate and highlighting near-term antimony potential as a domestic critical mineral.
Meanwhile, Nevada King Gold Corp (CVE: NKG) (OTCMKTS: NKGFF) is expanding shallow oxide gold-silver mineralization at Atlanta, with recent intercepts like 0.93 grams per tonne gold equivalent over 14.6 meters from surface at Silver Park East. This assay has confirmed broader district potential during its large-scale 2026 drilling campaign.
These kinds of results, alongside others in the Walker Lane and elsewhere, are fuelling investor inflows and keeping Nevada juniors firmly in the spotlight as the gold rally persists.
Read more: NevGold expands Bullet Zone discovery as drilling confirms oxide gold-antimony system
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NevGold is a sponsor of Mugglehead news coverage
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