Kobrea Exploration closes $8.5-million financing

Mr. James Hedalen reports KOBREA CLOSES PREVIOUSLY ANNOUNCED $8.5 MILLION PRIVATE PLACEMENT Kobrea Exploration Corp. has closed its previously announced private placement offering of 17 million units of the company at an issue price of 50 cents per unit for aggregate gross proceeds of $8.5-million. Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant entitles the holder thereof to acquire one common share at a price per share of 75 cents for a period of 24 months from the date of issuance, provided the warrants may not be exercised for a period of 60 days from the date of issuance. The company intends to use the net proceeds of the offering toward drilling and exploration at the company's projects in Mendoza province, Argentina, and for working capital and general corporate purposes. The offering comprises: (i) a brokered tranche for 7,753,000 units for gross proceeds of $3,876,500; and (ii) a non-brokered tranche for 9,247,000 units for gross proceeds of $4,623,500. The brokered offering was led by Kernaghan & Partners Ltd., as lead agent and sole bookrunner, on behalf of itself and a syndicate of agents, including Beacon Securities Ltd. and Red Cloud Securities Inc. The agents received a cash commission of $180,090 in connection with the brokered tranche of the offering, as well as 360,180 non-transferable broker warrants. Each broker warrant entitles the holder thereof to purchase one common share at a price of 75 cents per share for a period of 24 months following the closing of the offering. The company also paid cash fees of $180,960 to certain finders in connection with the non-brokered tranche of the offering, as well as 364,920 non-transferable finders' warrants. Each finder's warrant entitles the holder thereof to purchase one common share at a price of 75 cents per share for a period of 24 months following the closing of the closing of the offering. The units were issued on a private placement basis pursuant to Part 5A of National Instrument 45-106, Prospectus Exemptions, as amended and supplemented by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption, and as such will not be subject to resale restrictions under applicable Canadian securities laws. About Kobrea Exploration Corp. Kobrea Exploration is a mineral exploration and development company focused on the acquisition and exploration of base metal projects. Kobrea holds the right to earn a 100-per-cent interest in seven projects totalling 733 square kilometres in southwestern Mendoza province, Argentina (see the company's Aug. 19, 2024, news release for details). The properties are considered highly prospective for porphyry copper and porphyry copper-gold deposits. Numerous porphyry copper targets have been outlined to date exhibiting multikilometre hydrothermal alteration footprints, anomalous copper plus or minus gold plus or minus molybdenum geochemistry, quartz stockwork veining, localized hydrothermal breccias and Pliocene-to-Miocene-aged granodioritic to dioritic porphyry intrusions. Kobrea also holds a 100-per-cent interest in the Upland copper project in British Columbia, Canada. We seek Safe Harbor.