News Summary
On December 16, 2025, Viva Gold announced it has increased the size of its previously announced non-brokered private placement due to strong investor interest. The offering is now for up to C$4.0 million, up from the C$3.0 million announced on December 11, 2025.
The terms remain the same: units priced at C$0.16, each consisting of one common share and one common share purchase warrant. Each warrant allows the holder to purchase an additional common share at C$0.24 for 36 months. Proceeds will be used to advance technical and environmental studies for feasibility-level work at its Tonopah Gold Project in Nevada, as well as for general working capital.
Material Impact
This is a positive development. While a financing is inherently dilutive, the upsizing indicates that investor demand exceeded the company’s initial target. This is a crucial vote of confidence from the market, especially following the poorly-received Preliminary Economic Assessment (PEA) in July 2025, which saw the stock price fall by over 50%.
The financing addresses a critical short-term risk: the company’s dwindling cash position. As of the last financial report on July 31, 2025, Viva had less than C$1 million in cash with a quarterly burn rate of approximately C$700,000. This C$4 million infusion provides the necessary runway (estimated at over 12 months, depending on feasibility study expenditures) to complete the work needed to de-risk the project.
The financing price of C$0.16 is also notable. It’s above the post-PEA lows of C$0.08 and higher than the C$0.13 price of their last financing in April 2025. This suggests the market is willing to support the company’s plan to improve the project’s economics.
However, the news is not a game-changer. It simply keeps the company funded to execute the next step. The core challenge remains the project’s economics as outlined in the PEA: a very high initial capital expenditure (US$220M) and a marginal after-tax IRR (17.6%). This financing buys them a chance to prove, via a feasibility study, that they can substantially improve those numbers. The success of that effort will be the true catalyst.
Catalysts
– Immediate: The formal closing of the C$4.0 million financing. We need to see if insiders participated as indicated in the initial announcement, which would further bolster confidence.
– 3-6 Months:
– Updates on the feasibility study progress. Specifically, look for any announcements regarding trade-off studies aimed at reducing the high initial capex (e.g., using contract mining, leasing equipment, phased development).
– Any new metallurgical or geotechnical drill results that could positively impact recovery rates or mine design, thereby improving the IRR.
– News on the initiation of the formal permitting process in Nevada.
– The company must demonstrate tangible progress in addressing the key weaknesses identified in the July 2025 PEA.
Materiality Conclusion
The upsized financing is a routine but positive event. It successfully addresses the company’s immediate need for capital and signals renewed investor support. It allows management to proceed with the critical feasibility work required to improve the Tonopah project’s viability. However, it does not alter the fundamental high-risk profile of the project, which is dependent on delivering a much stronger economic study.
