Gold Terra Secures Crucial Financing Boost for Northwest Territories Gold Play with Strategic Osisko Backing

Gold Terra Resource Corp. has taken a significant step forward in advancing its high-grade gold projects in Canada’s Northwest Territories, securing a first tranche of its non-brokered financing package totaling C$4.4 million as of March 31, 2025. The financing, coupled with a strategic royalty exercise by Osisko Gold Royalties Ltd., positions the company to accelerate exploration at its flagship Con Mine Option (CMO) property—a historic high-grade gold deposit with the potential to revive Yellowknife’s mining legacy.

Financing Structure: A Blend of Capital and Strategic Partnerships

The financing comprises two key components:
1. C$2.4 million raised through a private placement of 20 million common shares at C$0.05 and 20 million charitable flow-through (CFT) shares at C$0.07. The CFT shares qualify for Canadian tax incentives, requiring Gold Terra to incur eligible exploration expenses by December 31, 2026, with renunciation to investors by year-end 2025.
2. C$2 million from Osisko Gold Royalties’ early exercise of a 2% net smelter return (NSR) royalty on Gold Terra’s Yellowknife Property, triggered by the financing’s successful close.

The combined funding will primarily finance drilling at the Con Mine, targeting the Campbell Shear structure, a historically prolific zone that contributed to the mine’s 5.1 million ounces (Moz) of gold production at an average grade of 16 grams per tonne (g/t) during its operational years.

Strategic Significance of Osisko’s Royalty Exercise

Osisko’s decision to exercise its NSR royalty early underscores its confidence in Gold Terra’s project. As one of North America’s leading gold streaming and royalty companies, Osisko’s involvement adds credibility to Gold Terra’s exploration narrative. CEO Gerald Panneton highlighted the partnership’s importance:
> "Osisko’s early exercise of the 2% NSR is a major affirmation of our strategy to advance high-grade gold assets toward potential production."

The royalty mechanism ensures Osisko benefits from future production, aligning its interests with Gold Terra’s success. This partnership also reduces Gold Terra’s financing risk, as Osisko’s expertise in resource development could provide operational insights.

Project Focus: Reimagining the Con Mine’s Potential

The Con Mine, which operated until 2003, was one of Canada’s highest-grade gold mines, yielding 14 Moz of gold from the Campbell Shear at grades of 16–22 g/t Au. Gold Terra’s current drilling program aims to expand Indicated and Inferred resources near surface and south of the mine, focusing on underexplored areas below existing underground workings. The company’s technical team, led by Qualified Person Joseph Campbell, is leveraging historical data and modern exploration techniques to identify high-grade free-milling ore, which could lower production costs.

The project’s infrastructure advantages cannot be understated. The Robertson shaft, existing water treatment facilities, and proximity to Yellowknife’s skilled labor and logistical networks reduce development risks and costs. Gold Terra’s goal is to leverage these assets to transform the Con Mine into a modern, economically viable operation.

Risks and Considerations

While the financing and Osisko’s backing are positive catalysts, risks remain. Exploration outcomes are uncertain, and historical resource estimates (e.g., 650,000 ounces at 11–12 g/t Au) are non-NI 43-101 compliant, requiring further validation. Regulatory approvals for drilling and infrastructure upgrades, along with fluctuating gold prices, could impact timelines and economics.

Conclusion: A High-Potential Play in a Historic Mining District

Gold Terra’s financing package and Osisko’s strategic investment mark a pivotal moment for the company. With C$4.4 million in immediate capital and access to Osisko’s expertise, Gold Terra is well-positioned to test the potential of the Con Mine’s high-grade zones. The project’s infrastructure, proximity to market, and historical pedigree reduce development hurdles, while the Northwest Territories’ gold-friendly regulatory environment adds further optimism.

Should drilling confirm significant resources, Gold Terra could unlock value in a region that once accounted for over 20% of Canada’s gold production. With Osisko’s backing and a focused strategy, the company is primed to capitalize on a niche opportunity in a globally recognized gold district. Investors should monitor drilling results closely, particularly updates on the Campbell Shear’s potential to deliver the high grades that defined the mine’s legacy.

As Panneton noted, "The Con Mine’s history is a testament to its geological potential." With modern exploration and strategic partnerships, Gold Terra aims to turn that history into a blueprint for future success.