Northwest mine developer raising capital.

A Dryden-area gold mine developer is out to raise more than $8 million to finance its open-pit and underground operation in northwestern Ontario.

Treasury Metals announced April 20 that it had filed a preliminary short form prospectus to raise up to $8.06 million for its Goliath Gold project, 20 kilometres east of Dryden.

The offering consists of a maximum of 12,400,000 units at a price of $0.65 per unit. Each unit consists of one common share of the Toronto-based open-pit mine developer. The offering closed May 11.

The Toronto-headquartered company plans on the initial development of an open pit to feed ore to a 2,500-tonne per day processing plant before mining heads underground in the mine's later years.

The company is currently in the mine permit process on the Goliath Project.

Commercial production is slated to begin in the fourth quarter of 2020.

Treasury Metals recently released an updated preliminary economic assessment (PEA) on the Goliath Project, projecting a 37 per cent increase in the life of the mine.

The average annual production is pegged at 87,850 ounces of gold over a 13 year period of combined open pit and underground mine life. The...