Xali Gold's C$1M Placement Adds 4M Shares, Funds Peru Project

Xali Gold Corp. will issue 4 million new shares at C$0.25 each to raise C$1 million, a non-brokered private placement that adds about 4 million shares to the company's outstanding count. The proceeds are earmarked for the Pico Machay gold project in Peru, an advanced exploration-stage asset with a near-term production goal, the company said.

Exploration and development work at Pico Machay will get roughly C$750,000 of the funds, with the balance going to working capital. The company plans to update the historical mineral resource estimate and advance permitting, while also continuing technical studies and community initiatives.

Pico Machay sits in the Southern Peru Epithermal Gold-Silver Belt, a historically productive district. Historical engineering studies envisioned an open-pit heap-leach operation based on a long-term gold price of $700 an ounce, compared with current gold prices. Xali Gold considers the project to have upside from drilling several untested targets and from the gap between that old $700 assumption and today's market.

The placement is set to close on or around June 17, subject to TSX Venture Exchange approval. The shares carry a four-month hold period. No warrants are attached. A small group of key investors is expected to take up the offering, the company said.

The lack of warrants limits future dilution from this tranche but also means investors get no price protection below C$0.25. Xali Gold's ability to deliver a resource update and a preliminary economic assessment will be the first catalysts to watch after the capital is raised. The company said a PEA would significantly de-risk the project and help unlock value.

Xali Gold also holds royalty agreements on the El Oro gold-silver project in Mexico, though its primary focus remains Pico Machay.