Jaguar Mining Inc. Announces Closing of Bought Deal Private Placement for Gross Proceeds of C$28.0 Million

Executive Summary

• Jaguar Mining closed its bought‑deal private placement, raising C$28,000,005 in gross proceeds.
• The net proceeds will fund the restart of the Turmalina Mine, exploration across its Brazilian portfolio, and general working capital.
• The offering included a related‑party purchase by Eric Sprott (≈49% ownership pre‑offering) and resulted in a modest dilution of his stake to ~48.3% post‑closing.

Key Details

• Offering Size & Price: 5,090,910 common shares sold at C$5.50 per share; total gross proceeds C$28,000,005 (including full exercise of underwriters’ option).
• Underwriters & Fees: Lead underwriter Red Cloud Securities; syndicate also included Research Capital Corp. and Ventum Financial Corp. Underwriters received cash fees of C$1,100,000.22 plus 199,999 non‑transferable common share purchase warrants (exercisable at C$5.89 per share, expiring 15 Oct 2027).
• Related‑Party Transaction: Eric Sprott, via 2176423 Ontario Ltd., purchased 1,818,182 shares for C$10,000,001, subject to a statutory hold period until 16 Feb 2026. This transaction is exempt from MI 61‑101 approval thresholds.
• Share Count Impact: Pre‑offering outstanding common shares: 80,130,272; post‑closing: 85,221,182.
• Ownership Changes: Sprott’s beneficial ownership fell from ≈49.13% to ≈48.33% of the non‑diluted share base. No new insiders or control persons were created.
• Use of Proceeds:
• Restart Turmalina Mine (MTL Complex)
• Exploration activities across all properties, especially Brazilian portfolio
• General working capital and corporate purposes
• Regulatory Conditions: Closing subject to final TSX approval; securities not registered in the U.S. and cannot be offered or sold there.
• Warrant Terms: Each warrant convertible into one common share at C$5.89; exercisable any time before 15 Oct 2027; subject to hold period until 16 Feb 2026.

Notable Quotes

“We are proud to announce the successful closing of this private placement, which represents a strong vote of confidence from our investors… This capital infusion will be pivotal in accelerating the restart of our Turmalina Mine and expanding exploration efforts across our highly prospective Brazilian portfolio.” – Luis Albano Tondo, CEO

“The successful completion of this offering underscores the financial community's confidence in Jaguar's strategy… The proceeds will be prudently allocated to high‑impact priorities, including the restart of our Turmalina Mine and targeted exploration programs.” – Marina Freitas, CFO