Metalsource closes $4M placement with $1M Sprott order
Executive Summary
- Metalsource Mining Inc. closed a non‑brokered private placement raising $4 million by issuing 20 million units at $0.20 each.
- The company also completed an option agreement with Goldstrike Minerals LLC to acquire 100 % of its North Carolina mineral lease interests, issuing three million shares to Goldstrike and incurring finder's fees.
- Proceeds will be used for exploration at the Silver Hill and Byrd‑Pilot projects in North Carolina, continued work on the Aruba manganese project in Botswana, and general working capital.
Key Details
- Private Placement:
- Total gross proceeds: $4 million.
- Units issued: 20 million at $0.20 per unit.
- Each unit = 1 common share + ½ transferable warrant (exercise price $0.30, three‑year term).
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Lead investor: Eric Sprott (via 2176423 Ontario Ltd.) subscribed for 5 million units ($1 million).
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Ownership Impact:
- Pre‑offering Sprott held ~7.2 % non‑diluted, 10.5 % partially diluted shares/warrants.
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Post‑offering Sprott holds ~13.8 % non‑diluted, 19.3 % partially diluted shares/warrants.
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Finder’s Fees (Private Placement): $150,000 paid; issuance of 742,000 non‑transferable broker warrants (exercise price $0.30, three‑year term).
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Option Agreement with Goldstrike Minerals LLC:
- Grants Metalsource the right to acquire 100 % of Goldstrike’s North Carolina mineral lease and exploration license interests.
- Initial issuance: 3 million shares to Goldstrike at closing.
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Finder’s fee: 10 % of transaction value, paid as $2,500 cash + 300,000 shares at closing; remaining fees payable upon each annual payment under the option agreement.
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Hold Period: All securities issued in the private placement and option transaction are subject to a lock‑up until Feb 10 2026 (four months and one day).
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Use of Proceeds:
- Advance exploration at Silver Hill and Byrd‑Pilot projects (North Carolina) – primary focus on expanding Silver Hill’s silver potential.
- Continue work on the Aruba manganese project in Botswana.
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General working capital.
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Marketing Services Agreement with Equitrend Data Inc.:
- Service period: three months (extendable another three months).
- Compensation: US$350,000 for the initial term; optional additional US$350,000 if extended.
- Services include PPC campaigns, social media/email marketing, landing page creation, and digital advertising across platforms such as Instagram, Facebook, YouTube.
- Equitrend holds 500,000 shares of Metalsource; no other ownership interest.
Notable Quotes
- “With this financing complete, we are set to move forward aggressively across its key assets – Silver Hill, Byrd Pilot and the Aruba project in Botswana. We intend to maintain strong momentum into 2026 and deliver meaningful progress for shareholders,” — Joe Cullen, Chief Executive Officer.