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Gold Explorer Secures US$7.5M in Nevada Exit

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Scorpio Gold Corp. (SGN:TSX.V) sold its Nevada-based Mineral Ridge project for US$7.5M, strengthening its balance sheet and funding growth at Manhattan. Read more to find out how this strategic shift supports upcoming drilling, resource expansion, and long-term development plans.

Scorpio Gold Corp. (SGN:TSX.V) has finalized the sale of its Mineral Ridge project in Esmeralda County, Nevada, through a transaction executed by its wholly owned subsidiary, Scorpio Gold (US) Corporation. The asset was sold to an arm's-length third party for a total purchase price of US$7.5 million.

According to the terms of the agreement, the purchaser acquired all membership interests in Mineral Ridge Gold, LLC, including associated unpatented mining claims. Of the total consideration, US$5 million was paid directly to Scorpio Gold. An additional US$1.5 million was placed into escrow as an indemnification holdback, with 50% of the funds scheduled for release on November 25, 2025, and the remainder on May 25, 2026. The final tranche of US$1 million is due on August 25, 2026.

As part of the deal, the purchaser also assumed responsibility for the reclamation bond obligations associated with the project. Certain assets related to the project were retained by Scorpio Gold and transferred internally to its US subsidiary before the closing of the transaction. No finder's fee was paid in connection with the sale.

Zayn Kalyan, CEO of Scorpio Gold, stated in the news release, "The successful closing of the Mineral Ridge sale marks a pivotal milestone for Scorpio Gold. By divesting this non-core asset, we have significantly strengthened our balance sheet, eliminated ongoing holding costs, and secured meaningful, non-dilutive capital to advance our flagship Manhattan District project."

Scorpio Gold continues to focus on its 100%-owned Manhattan District project in Nevada. This consolidated exploration-stage property includes the Goldwedge Mine and several past-producing open pits acquired in 2021.

Gold Prices Remain Elevated as Investors Respond to Global Instability

The gold market demonstrated continued strength through August, with prices holding steady amid concerns over rising global debt, persistent inflation, and equity market volatility. On August 20, gold futures opened at US$3,359 per ounce, up 1.4% from the previous close. Although slightly below the August 11 peak of US$3,383.90, the price marked a 34.2% year-over-year increase, reflecting ongoing demand for gold as a defensive asset.

In an August 19 commentary for GoldFix, analyst VBL emphasized gold's long-term strength relative to fiat currencies. He wrote that paper currencies have lost over 99% of their purchasing power against gold since 1971 and described gold as a more stable benchmark. "Gold, which is far more honest than policy makers, rises because paper money always dies under the weight of dishonest spending," he stated.

The August edition of the Von Greyerz Monthly Gold Briefing further reinforced the case for physical gold holdings. It characterized storage in segregated or allocated accounts, where investors maintain direct ownership of specific bars as "timeless, honest and essential," calling it a key element of long-term financial security. The report also expressed skepticism about newer digital assets such as stablecoins, citing their reliance on U.S. Treasuries for backing as a structural vulnerability.

Chen Lin noted how Scorpio "hit 92.81m of 1.24g/t gold and sold Mineral Ridge for 7.5 million US, greatly strengthening its balance sheet."

In an August 27 report for Stockhead, Phoebe Shields highlighted gold's contribution to gains on the Australian Securities Exchange. The ASX 200 rose 0.28%, supported by a 2.48% increase in the ASX All Ordinaries Gold Index, which lifted the broader materials sector by 1.42%. Shields noted that gold has consistently traded above US$3,300 in recent months, providing investors with a degree of stability amid changing U.S. policy, inflation concerns, and geopolitical uncertainty. She added that Australia's position as the world's third-largest gold producer continues to bolster its role as a safe haven in turbulent markets.

Also on August 27, Bloomberg noted that gold's recent consolidation appears to reflect building momentum rather than stalling, with support holding around US$3,250 and resistance near US$3,450. Ongoing central bank buying and renewed ETF inflows were cited as key factors underpinning price stability. Additional catalysts included governance uncertainty tied to efforts to remove Fed Governor Lisa Cook and expectations of potential interest rate cuts. Bloomberg emphasized that technical levels remain influential, suggesting that a break above US$3,450 could clear the way for new highs, similar to past moves seen in 2020.

Expert Sees Momentum Building in Gap Zone

On August 25, Jeff Clark of TheGoldAdvisor.com highlighted Scorpio Gold's initial results from its 2025 drill program at the Manhattan District project in Nevada. He described the results as a "strong hit," citing a headline intercept of 1.24 grams per tonne (g/t) gold over 92.81 meters, including 19.01 g/t over 3.05 meters. Additional holes returned 1.79 g/t over 11.89 meters and 1.50 g/t over 25.15 meters.

Clark noted the importance of the Gap Zone, a previously undrilled 200-meter corridor between the historic Goldwedge and West Pit mines. The company has completed 11 diamond drill holes totaling 3,820 meters. According to Clark, the results confirm mineralization in this corridor and suggest growing potential for near-term resource expansion.

Vice President of Exploration Harrison Pokrandt stated that the Gap Zone results "confirm mineralization" and open new opportunities at depth and along strike. He added that follow-up results are expected from Mustang Hill and the Zanzibar Trend.

Clark reported that a maiden mineral resource estimate is expected this quarter and maintained his full position in the company, calling the stock a buy on dips.

Newsletter writer Chen Lin also shared positive thoughts on the stock. In the August 26 edition of What is Chen Buying? What is Chen Selling?, Chen Lin noted how Scorpio "hit 92.81m of 1.24g/t gold and sold Mineral Ridge for 7.5 million US, greatly strengthening its balance sheet."

Strengthened Focus and Exploration Momentum

Scorpio Gold has outlined a comprehensive development program at its Manhattan District project, leveraging proceeds from the Mineral Ridge sale. The district spans approximately 4,780 hectares within Nevada's Walker Lane Trend, an established mining jurisdiction, as outlined in its investor presentation.

Recent and ongoing activity includes a minimum of 10,000 meters of diamond drilling, metallurgical testing, and structural analysis. Drill results released in 2025 highlighted intercepts such as 27.16 grams per tonne (g/t) gold over 16.8 meters and 11.98 g/t gold over 13.7 meters. Additional work at Mustang Hill and the Zanzibar Trend builds on over 100,000 meters of historical drilling across the district.

The company also retains a gravity mill with a daily capacity of 400 tons and wholly owned water rights, further contributing to its operational readiness.

The 2025 program includes targeted geological mapping, geophysical surveys, and a metallurgical campaign to confirm the amenability of the mineralization to cyanidation. Historical testing has indicated gold recoveries of up to 90% through flotation and gravity circuits, with prior heap leach operations achieving 77% recovery.

streetwise book logoStreetwise Ownership Overview*

Scorpio Gold Corp. (SGN:TSX.V)

*Share Structure as of 8/28/2025

By consolidating ownership of contiguous past-producing properties and implementing an aggressive drill and study plan, Scorpio Gold is positioning the Manhattan District as a focal point of its exploration efforts in Nevada. The transaction proceeds are expected to support continued advancement across multiple high-priority targets. 

Ownership and Share Structure

According to Refinitiv, 8.65% of Scorpio Gold is held by the institution Euro Pacific Asset Management LLC.

4.12% is held by management and insiders, with Michael Townsend holding 1.54%, Ian Dawson with 1.18%, and Peter Hathaway with 1.03%.

The rest is retail.

Scorpio Gold has a market cap of CA$51.37 million, 212.99 million free-float shares, and a 52-week trading range of CA$0.08 to CA$0.34.


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Important Disclosures:

  1. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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