Flow-Through Financing Boosts Exploration in Ontario's Gold-Rich Red Lake District

1. Renegade Gold Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Renegade Gold Inc.
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Renegade Gold Inc. (RAGE; TSX: TGLDF; OTC: 070:FSE) announced a non-brokered private placement of flow-through common shares ("FT Shares") at US$0.18 per share, with gross proceeds of up to US$1 million. Flow-through shares are a financing mechanism that allows Canadian exploration companies to transfer certain tax benefits to investors, enabling companies to fund eligible exploration activities.

The proceeds will be allocated to "Canadian exploration expenses," qualifying as "flow-through mining expenditures" under the Income Tax Act (Canada). These funds are earmarked for exploration activities in Ontario's Red Lake District, particularly at the Newman Todd project. Recent drill results from Newman Todd include a high-grade intersection of 14.0 grams per tonne (g/t) gold over 7.3 meters, as disclosed in a September 25, 2024, release. Renegade plans to focus on follow-up drilling at Newman Todd while also targeting new exploration across its Red Lake properties, including the Gullrock property and the central Red Lake land package, located near significant projects like Kinross's Great Bear Project and Evolution Mining's operations.

As detailed in the news release, Renegade anticipates the possibility of finders' fees paid in cash or non-transferable warrants, subject to regulatory compliance. The placement is expected to close in multiple tranches, contingent upon approvals from the TSX Venture Exchange. All securities issued will be subject to a regulatory hold period of four months and one day.

Gold Sector Momentum: Central Banks and Economic Shifts Fuel Growth

On November 13, Quoth the Raven reported that gold surpassed US$2,500 per ounce earlier in the year. This milestone marks record highs and positions it as one of the best-performing assets of 2024. Central banks were significant buyers, with over 1,037 tons purchased in 2023, marking the second-highest annual total in history. Judy Shelton, a prominent advocate of sound money, noted that central bank activity "testifies to good prospects for the serious consideration of a new proposal" to utilize gold for monetary stability.

Egon von Greyerz of Von Greyerz AG wrote on November 26 that global gold demand was set to rise significantly due to sustained purchases by Eastern and Southern central banks. He observed that limited gold production, coupled with the rehypothecation of Western reserves, would drive prices higher. "This is why gold will rise by multiples," he explained, citing gold's historical role in wealth preservation and the vulnerabilities of fiat currencies.

On November 28, David Brady of Sprott Money analyzed COMEX futures data, indicating a pullback in gold prices from October highs as part of a typical market cycle. He noted that positioning trends among speculative funds and bullion banks often signal opportunities for long-term investors during corrections. Brady explained that bullion banks reducing their net short positions pointed to future upward momentum.

In a November 30 report, Citizen Watch highlighted three critical factors driving gold's revaluation: de-dollarization, central banks increasing reserves, and surging national debt. The publication outlined scenarios under which gold prices could reach as high as US$50,000 per ounce in extreme cases of hyperinflation, emphasizing its role as a safe haven asset during times of significant economic instability.

Most recently, on December 5, Kitco Media reported that gold prices settled at US$2,653.90, a decline of 0.76% for February futures. The losses were mitigated by a weakening U.S. dollar, which fell 0.58% to 105.692 on the index. The report highlighted the market's focus on the December jobs report, a key indicator for Federal Reserve monetary policy decisions, with economists projecting 200,000 new jobs in November. The anticipation of a 25-basis-point rate cut at the upcoming FOMC meeting further underscored the evolving economic landscape that continues to support gold's role as a hedge against monetary policy shifts.