Founders’ value doubles after Suriname project strides

After a strong year of high-grade gold drill results at its Antino project in Suriname, Founders Metals (TSXV: FDR; US-OTC: FDMIF) has started off 2025 on the front foot.

In early February, the Vancouver-based explorer announced a $30-million bought deal financing by a group of underwriters led by BMO Capital Markets for 5.7 million common shares. The proceeds are to be spent on advancing exploration at Antino, Founders said.

B2Gold (TSX: BTO) spent $2.57 million to maintain its 5% shareholding in Founders after the bought deal. The shares have doubled from mid-August to near press time at $5.25 apiece in Toronto, for a market capitalization of $465 million.

Located 275 km south of the capital, Paramaribo, Antino is just across the Lawa River from French Guiana. The property has produced 500,000 oz. of artisanal gold historically, Founders says. The project also sits on the Guiana Shield which spreads under neighbouring countries in South America and hosts Newmont’s (TSX: NGT) Merian and Zijin Mining’s Rosebel gold mines.

BMO starts coverage

Just before the financing news, in late January BMO announced it was initiating coverage of Founders, giving it a $7.50 target price at an outperform rating based on a conservative valuation for an assumed open pit at Antino.

“Founders Metals appears to have made a high-margin gold discovery at its Antino project,” BMO analyst Andrew Mikitchook wrote.

He cited Antino’s “centrepiece” Froyo zone that has returned such results as 38 metres grading 10.9 grams gold per tonne and 46 metres at 5.31 grams gold. He also pointed to the Donut target where almost a year ago an intercept cut 19 metres at 14.2 grams gold.

“In our opinion, there is a scarcity premium globally for quality new discoveries to replace existing steadily depleting operating mines,” Mikitchook said. “Our initial development placeholder assumptions suggest a 290,000-oz.-per-year development scenario for Antino, firmly placing it among the scale and style of deposits sought by investors and in many cases acquired by established operators.”

Strong sample results

BMO’s coverage came just days after Founders released its first gold discoveries of the year at Antino, with channel sampling returning 17.8 metres grading 5.68 grams gold in the Van Gogh shear zone.

Grab sampling in the same channel also returned grades of 66.8 grams gold, 11 grams gold and 7.8 grams gold per tonne.

The discovery shows the emergence of a parallel gold trend several kilometres long east of the main Antino structure, Founders said. It has started its fully-funded 60,000-metre drill program for this year.

“With all four drills back turning following a three-week break over the holidays, we’re starting out strong in 2025,” CEO Colin Padget said.

Industry’s confidence

Founders closed off 2024 with industry backing in the form of B2Gold’s (TSX: BTO; NYSE: BTG) $12.1-million investment in October and a $20-million private placement from a syndicate of underwriters led by BMO.

Just weeks before, Great Bear Resources founder and CEO Chris Taylor was appointed as an independent director on Founders’ board.

Taylor led Great Bear’s district-scale gold discovery in the Red Lake region of northern Ontario and its later sale to Kinross Gold (TSX: K; NYSE: KGC) for $1.8 billion. Taylor was also named The Northern Miner’s Mining Person of the Year in 2021.