Pasinex Closes First Tranche of Over-Subscribed Non-Brokered Private Placement

Executive Summary

• Pasinex Resources closed the first tranche of a non‑brokered private placement, raising C$1,613,000.
• The offering consisted of 16,270,000 units at C$0.10 each, each unit containing one common share and half a warrant exercisable at $0.15 for 24 months.
• Net proceeds will fund the Sarikaya project (installment payments, underground development, drilling, equipment, permitting) and provide general working capital, supporting continued production expansion at Pinargozu.

Key Details

• Gross proceeds: C$1,613,000 from the first tranche; additional commitments of ~C$200,000 expected, potentially bringing total financing to ≈C$2.0 million.
• Units issued: 16,270,000 units at C$0.10 per unit.
• Warrant terms: Each whole warrant exercisable at $0.15 per common share for a period of 24 months.
• Share capital post‑closing: 254,489,081 common shares issued and outstanding.
• Finder’s fees: Cash fee of C$8,050 plus issuance of 140,000 units to the finder.
• Insider participation: Insiders subscribed for 970,000 units (C$97,000), constituting a related‑party transaction under MI 61‑101 with reliance on exemption provisions.
• Statutory hold period: Four months plus one day from issuance for all securities issued in the offering.
• Use of proceeds:
• Advance Sarikaya project – installment payments to previous owner, underground development, drilling, mine equipment, permitting costs.
• General working capital.
• Additional advanced exploration within the Sarikaya license area.
• Management commentary: Executive Chairman Dr. Larry Seeley highlighted recent high‑grade zinc sales from Pinargozu, conversion of C$5 million debt to equity, and the financing’s role in strengthening the balance sheet and supporting a transition to a revenue‑generating phase.

Notable Quotes

“The success of this oversubscribed financing strengthens our balance sheet and reflects growing investor confidence as we transition into a revenue‑generating phase.” – Dr. Larry Seeley, Executive Chairman, Pasinex Resources Limited.