Chakana Copper closes $1.25-million private placement

Executive Summary

• Chakana Copper Corp. completed a non‑brokered private placement of 17,857,156 units at C$0.07 per unit, raising gross proceeds of US$1.25 million.
• EMR Capital acquired ~4.95 M units (~10.5% non‑diluted equity) and obtained board nomination rights, anti‑dilution protection, and the ability to appoint a project advisor.
• Net proceeds will be used to evaluate new exploration opportunities, fund ongoing projects, and cover general working capital and administrative expenses.

Key Details

• Placement Structure: 17,857,156 units @ C$0.07 per unit (≈ US$1.25 M gross). Each unit = 1 common share + 1 common share purchase warrant.
• Warrant Terms: Warrants allow purchase of one additional share at C$0.09 for a period of three years from closing.
• EMR Capital Participation: Purchased 4,947,948 units for US$346,356.33, resulting in a 10.5% non‑diluted equity interest. Granted anti‑dilution rights, right to nominate one director, and right to appoint a project advisor.
• Insider Participation: Company officer purchased 3,166,686 units for US$221,668.05.
• Finder’s Fees: Paid cash finder fees of US$1,928.67 and issued 27,552 non‑transferable finder warrants (exercise price C$0.09, three‑year term).
• Hold Periods: All securities subject to a four‑month hold period expiring Jan 27 2026; debt settlement shares subject to a four‑month‑plus‑one‑day statutory hold period.
• Use of Proceeds: Primarily for evaluating new opportunities, exploration activities, and general working capital/administrative purposes. No payments planned for investor‑relations services.
• Debt Settlement Approval: TSX Venture Exchange approved settlement of previously disclosed management‑fee debt; fully settles outstanding board and management obligations.
• Regulatory Notes: Placement remains subject to final TSX Venture Exchange approval; participation exempt from MI 61‑101 valuation/minority‑shareholder approval requirements under specified sections.

Notable Quotes

“We are excited to see such strong support for the financing and to welcome EMR Capital as a new shareholder. The primary use of the proceeds will be for evaluating new opportunities at a time of very strong copper and precious metal prices.” – David Kelley, President & CEO

Materiality Assessment: Material – Positive (the financing provides capital for growth initiatives and introduces a strategic investor with board influence.)