San Lorenzo increases placement to $5-million

On December 15, 2025, San Lorenzo Gold announced that due to significant investor demand, it is increasing the size of its previously announced non-brokered private placement. The total gross proceeds to be raised will now be up to $5,000,000, an increase of 25% from the $4,000,000 announced on December 11, 2025. The terms of the placement remain unchanged.

This news is materially positive. The company's September 30, 2025 financial statements revealed a critical need for capital, showing only C$668k in cash against C$1.48 million in current liabilities, resulting in a working capital deficit of over C$740k. An imminent financing was not just expected but necessary to continue operations.

The initial financing announcement on December 11 was highly unusual and exceptionally bullish for two reasons: 1. Premium Pricing: The placement was priced at US$0.62 per unit. At the time of the announcement, the stock was trading in the C$0.69 - C$0.77 range. A financing priced at a significant premium to the market is a rare and powerful indicator of strong institutional or strategic demand, suggesting investors were willing to pay more to secure a position. 2. Balance Sheet Restructuring: The financing was coupled with a major balance sheet cleanup, including the conversion of related-party debt and the repayment of a significant term loan.

The most recent news of a 25% upsize confirms this strong demand. An oversubscribed financing, especially one priced at a premium, removes any doubt about the market's perception of the company's Salvadora project. This event significantly de-risks the company's short-to-medium term financial position. The additional $1 million provides a larger treasury for a more aggressive and expanded exploration program, extending the company's operational runway well into the next 12-18 months.

While any financing is dilutive, this sequence of events has turned a financing necessity into a major vote of confidence, validating the company's exploration success and future potential. The financing overhang is now removed, allowing the market to focus on the upcoming drill results.

San Lorenzo Gold Corp. is a Canadian-based junior exploration company focused on its flagship Salvadora Gold-Copper project in Chile. The 9,069-hectare property is located in the prolific megaporphyry belt, approximately 15 km from Codelco's El Salvador copper-gold mine.

The company's exploration efforts have focused on several key targets, primarily the Cerro Blanco porphyry target and the Arco de Oro epithermal vein system. After years of preliminary work, the company made a significant discovery in March 2025, drilling 153.5 metres of 1.04 g/t gold in the first-ever hole at Cerro Blanco. Subsequent drilling has confirmed the presence of a large, well-mineralized system, open in multiple directions.