By: Ecofin agency

Canadian junior miner Newcore Gold announced on Monday that it raised C$3.8 million (about $2.7 million) after investors exercised outstanding warrants issued earlier this year.

The new financing boosted the company's total liquidity to C$10.1 million, which it plans to use to fund operations, including ongoing work at its Enchi gold project in Ghana. Specifically, the funds will support a pre-feasibility study (PFS) expected in 2026.

The PFS is intended to update the project's key metrics. A Preliminary Economic Assessment (PEA) published in 2024 envisioned a mine capable of producing an average of 121,839 ounces of gold per year over a nine-year life, based on an estimated initial capital expenditure of $106 million.

Concurrent with the PFS, Newcore is conducting a 35,000-meter drill program at the Enchi site, aiming to identify new resources and maximize the gold potential. The Enchi project currently holds 743,500 ounces of gold in the indicated resource category and 972,000 ounces in the inferred resource category. Achieving its exploration goals will be crucial for the project's progress.

These steps precede others necessary for the future mine's construction, including converting resources into mineable reserves and securing the required permits and financing.

Meanwhile, gold production in Ghana continues to strengthen, notably with the recent commissioning of Newmont's Ahafo North project.