The Journey Continues: Pasofino Back On Track To Production After Raising $3.6 Million In A Private Placement To Advance Its Dugbe Gold Project

Pasofino Gold Ltd. EFRGF, the Canada-based mineral exploration company, now has more firepower to advance its Dugbe Gold Project in West Africa's gold-rich Liberia, having completed a non-brokered private placement of units of the company's shares.

The mining company raised $3.6 million in gross proceeds after pricing each unit at $0.36. Each unit consists of one common share of Pasofino Gold and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the company at a price of C$0.75 for 24 months after the issue date of the units. The offering closed on May 27, 2025. 

Net proceeds from the capital raise will go to advance Pasofino Gold's Dugbe Gold Project and for general working capital purposes, reports the company. "Thank you to all subscribers who participated in the financing. We now embark on the process of updating the 2022 feasibility study in an effort to better reflect the current gold price environment and the current costs associated with building the Dugbe Gold Project," said Brett Richards, CEO of Pasofino Gold. "We are entering into an exciting period, and I look forward to presenting the results of the update as soon as possible."

Striking Gold 

The  Dugbe Gold Project is within what the company says is one of the last remaining under-explored parts of the Birimian geological province, which is host to the majority of West African gold deposits. This part of the Birimian has a growing gold endowment, and Pasofino has a ground holding of 2,078 km, reports the company. Pasofino, through its wholly-owned subsidiary ARX Resources Limited, owns 100% of the Dugbe Gold Project. A mineral development agreement issued by the government of Liberia for the project secures mining rights and terms for 25 years.  

The company is currently updating its feasibility study which was last conducted back in 2022 when gold was priced a lot lower. Pasofino plans to update all aspects of the study with respect to costs and gold price assumptions, as well as optimize all processes to maximize recoveries and project economics. Pasofino's aim is to get a construction decision within eighteen months.  

In a recent interview with Benzinga, Richards said that, given that gold prices have more than doubled since the original feasibility study, the new study should have much better economics. Simultaneously, Pasofino will also work to get all its permitting done with an eye toward obtaining a Class A mining license by next year. Gold production at Dugbe should commence in two and a half to three years, Richards told Benzinga. 

Insiders Take Part In Private Placement 

As for the private placement, Pasofino said a total of 10 million common shares and 5 million warrants were issued. All of the securities are subject to a four-month holding period, which expires on September 8, 2025. Underscoring his faith in the company and its West African mine, Richards purchased 400,000 units while Mansa Resources Limited, an affiliate of Hummingbird Resources, which owns a 50.78% stake in Pasofino, acquired roughly 5.18 million units. All told, insiders acquired 55.76% of shares. 

The offering comes a few weeks after Pasofino entered into a co-operation deal with Hummingbird Resources and West African investment firm Nioko Resources to advance the Dugbe Gold Projects. The deal included a board reconstitution as part of which the company's board will be made up of three Hummingbird Resources nominees and three board nominees from Pasofino, including Richards. The co-operation agreement also called for the termination of Pasofino's shareholder rights plan. 

Under the terms of the co-operation agreement, Hummingbird and Pasofino agreed that for the remainder of calendar year 2025, Pasofino will seek to raise funds to update the feasibility study and to commence certain pre-construction activities such as infrastructure development and initial site preparation. Pasofino expects to raise about $10 million in 2025 and $15 million in 2026  to prepare the project for a construction decision. This capital raise is part of that goal. 

The price of gold is soaring and Pasofino thinks it’s sitting on a gold mine in West Africa. With fresh cash in the coffers, a new feasibility study underway and a partnership designed to advance the Dugbe Gold Project, Pasofino Gold is shining bright. 

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