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The latest announcement is out from Sanatana Resources ( (TSE:GSR) ).
Gold Strike Resources has closed the second and final tranche of its bought-deal private placement of subscription receipts, raising gross proceeds of approximately $17.22 million through the issuance of 31,309,273 subscription receipts at $0.55 each. The financing was led by ATB Capital Markets and Canaccord Genuity and included an over-allotment option, with a portion of underwriters’ cash commissions and compensation options contingent on escrow conditions tied to a pending acquisition.
Proceeds from the offering have been placed in escrow and will be released once conditions for completing Gold Strike’s acquisition of the Florin, FLR and RJ gold projects are met under an existing purchase agreement with LIRECA Resources and its affiliate. Net funds are earmarked to pay cash consideration and transaction costs for the acquisition, advance exploration and development of the acquired mineral projects, and provide working capital, positioning the company for a larger exploration footprint subject to final TSX Venture Exchange approval.
The most recent analyst rating on (TSE:GSR) stock is a Hold with a C$0.51 price target. To see the full list of analyst forecasts on Sanatana Resources stock, see the TSE:GSR Stock Forecast page.
Spark’s Take on GSR Stock
According to Spark, TipRanks’ AI Analyst, GSR is a Neutral.
The score is driven primarily by very weak financial performance (pre-revenue, widening losses, and sustained negative free cash flow), which raises ongoing financing risk. Technicals also detract due to a clear downtrend and negative momentum, despite oversold readings. Valuation provides limited support because losses make the negative P/E less informative and no dividend yield is available.
To see Spark’s full report on GSR stock, click here.
More about Sanatana Resources
Gold Strike Resources Corp. is a Vancouver-based mineral exploration company focused on gold projects. Listed on the TSX Venture Exchange under the symbol GSR, it is expanding its portfolio through acquisitions of advanced-stage gold assets in Canada, targeting growth in the precious metals exploration space.
Average Trading Volume: 170,694
Technical Sentiment Signal: Sell
Current Market Cap: C$22M
Learn more about GSR stock on TipRanks’ Stock Analysis page.