P2 Gold secures $7.5 million for Gabbs project in Nye County

P2 Gold has added fresh financing to its Gabbs push, a move that keeps the Nye County project on a path that could eventually mean construction jobs, new pressure on local infrastructure and a bigger industrial footprint near the small town of Gabbs.

The company said April 22 it intended to complete a non-brokered private placement of 10 million units at 75 cents each, raising $7.5 million. Each unit includes one common share and one warrant exercisable at $1.50 for two years. The financing was tied to The Quaternary Group Limited, and P2 said the deal would lift that investor’s position to 25 million shares and 25 million warrants, or about 8.7% of the company’s outstanding common shares on a non-diluted basis and 16.0% on a diluted basis after closing. The securities are subject to a four-month hold, and the transaction still needs TSX Venture Exchange approval.

For Gabbs, the money is aimed at exploration and development as P2 tries to move the project from study into a mine plan that can stand up to permitting and financing scrutiny. The company’s May 11 feasibility update said the study would use a nominal production rate of 12 million tonnes a year, with heap leach production running at 14 million tonnes a year in the first two years and mill startup brought forward to year three instead of year six. P2’s target remains annual output of about 150,000 ounces of gold and 45 million to 50 million pounds of copper.

The financing comes after another key de-risking step: in March, P2 said it had agreed to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin for $10.625 million. The company said that water supply exceeds projected process-water needs and could support expansion, but the transfer still needs approval from the Nevada Division of Water Resources, a process P2 expects to take six to 12 months. That timing overlaps with the company’s goal of finishing the feasibility study in the fourth quarter of 2026.

The scale of the project is what makes the move relevant for Nye County. Gabbs sits about 9 kilometers south-southwest of the town of Gabbs and about 145 miles by paved road from Reno. The property covers about 4,500 hectares, with 543 unpatented lode claims and one patented claim, and it already has paved Highway 361, power infrastructure and a major transmission line crossing or bordering the site. P2 reports an indicated resource of 0.72 million ounces of gold, 2.17 million ounces of silver and 297.0 million pounds of copper, plus an inferred resource of 1.28 million ounces of gold, 3.04 million ounces of silver and 567.1 million pounds of copper.

If P2 gets through feasibility and permitting, the stakes extend well beyond investor returns. Gabbs is an unincorporated town with roots as a 1941 company town for Basic Magnesium, Inc., and a mine of this size would likely raise questions about roads, water, power, county services and the tax base in a remote part of Nye County. For now, the financing signals that P2 is still moving forward, but the real test remains whether the company can turn capital, water rights and an expanded study into a permit-ready project in Gabbs.