Providence Gold Mines Inc. Announces Financing

Providence Gold Mines Inc. announced a non-brokered private placement of up to 20,000,000 units priced at $0.05 per unit, with gross proceeds capped at $1,000,000 CAD. Each unit comprises one common share and one share purchase warrant, which are exercisable at $0.07 per share for a period of one year. The company intends to use the proceeds to advance the La Dama De Oro Gold Property and cover general and administrative expenses. The transaction remains subject to approval by the TSX Venture Exchange, and finder’s fees may be paid in connection with the financing.

Providence Gold Mines Inc. (PHD) has secured a $1,000,000 financing package, marking a significant increase from previous capital raises that ranged from $80,000 to $180,000 CAD. This scaling aligns with the company’s stated plan to execute a permitted 1,000-ton bulk sample and fund upcoming core drilling on the Western Mojave Girl vein.

The offering introduces 20,000,000 new common shares and 20,000,000 warrants to an existing base of approximately 63.6 million shares. This represents a 31% increase in common shares and a substantial increase in potential dilution from warrants. The $0.05 issue price sits at the lower end of the recent trading range of $0.04–$0.06, indicating the company is pricing the offering conservatively to attract capital but at a discount to recent highs.

The news is expected and incremental, as exploration-stage companies routinely raise capital to fund sampling, bulk samples, and drilling. It does not contain unexpected, market-moving fundamentals, but it does secure the cash runway necessary to test the high-grade assay results reported in September 2026. The material impact is positive for operational continuity but negative for immediate per-share value due to dilution.

Providence Gold Mines Inc. is a micro-cap exploration company focused on the La Dama De Oro Gold Property in California. The property is a historic high-grade gold producer located in the Silver Mountain Mining District, within the Eastern California Shear Zone. Mineralization is characterized as a low-sulfidation epithermal Au-Ag vein system hosted by the La Dama De Oro Fault. The largest known vein, Mojave Girl, is up to 5 feet wide and remains open for over 6,000 feet along strike.

The company holds all necessary permits, including water, road, environmental, plan of operations, and mill site approvals, and is approved for a 1,000-ton bulk sample. No modern drilling or NI 43-101 compliant resources have been defined to date. Recent sampling has returned high-grade intercepts, including:

• Up to 14 g/t Au in upgraded stockpile samples
• 8 g/t Au over 0.45m true width in the Western Mojave Girl vein