Proceeds will be used for a prefeasibility study on the River Valley PGM project in Ontario.

In 2019, First Cobalt entered into a loan agreement with the miner and commodity trader to fund engineering studies, metallurgical testwork and permitting activities.

The study outlines a 15-year underground operation with an average annual gold production of 220,300 oz.

The latest deal is New Gold’s second equity investment in less than a week.

Major miners need to increase spending to secure fresh copper supply, analysts say, amid worries that availability of the red metal will slide just as demand surges.

Chevron owns a 50% stake in the project and will halt further funding after failing to find a buyer.