ALDEBARAN ANNOUNCES C$20 MM BOUGHT DEAL LIFE OFFERING AND CONCURRENT PRIVATE PLACEMENT

The most recent news (2026-01-26) announces a substantial financing package. The company has arranged a bought deal public offering using the Listed Issuer Financing Exemption (LIFE) for C$20 million (6,154,000 shares at C$3.25). Concurrently, a private placement for existing securityholders for C$54.5 million (16,769,231 shares at the same C$3.25 price) is announced, bringing the total potential gross proceeds to C$74.5 million. The stated use of proceeds is to complete a prefeasibility study (PFS) on the Altar copper-gold project in Argentina and for general working capital. The offering price of C$3.25 represents an approximate 12.2% discount to the closing price of C$3.70 on January 23, 2026.

This news is materially negative for the following reasons: - Significant Dilution at a Discount: The combined financing would issue approximately 22.9 million new shares, representing about 13.5% dilution to the existing 169.9 million shares outstanding. Raising capital at a ~12% discount to the recent market price is dilutive and signals a need for capital that outweighs concern for near-term shareholder dilution. - Post-Nuton Capital Raise: This financing comes just over two months after the termination of the option agreement with Nuton Holdings Ltd. (a Rio Tinto venture). The loss of that potential strategic partner and source of non-dilutive capital/technology has forced the company to raise funds from the public market entirely on its own, increasing execution risk and cost of capital. - Context of Declining Cash: The company's cash balance fell from C$18.7M at June 30, 2025, to C$13.3M at September 30, 2025, with a quarterly cash burn from operations and investing of ~C$5.5M. While the PEA was a positive milestone, advancing to a PFS requires significant capital, and this financing addresses that need. However, the scale (C$74.5M) suggests the PFS will be comprehensive and costly, or that the company is building a large war chest. - Market Timing: The financing is launched after the stock has traded in the C$3.60-C$3.80 range, following the positive PEA release in October 2025. The discount may put downward pressure on the share price in the near term as the market absorbs the dilution.

Aldebaran Resources Inc. is a Canadian mineral exploration company focused on the Altar copper-gold project in San Juan Province, Argentina. The flagship Altar project is a large-scale porphyry copper-gold system. The recently filed Preliminary Economic Assessment (PEA) outlines a 48-year mine life with an after-tax NPV(8%) of US$2.0 billion and an IRR of 20.5%, based on a 60,000 tpd operation. The project contains Measured, Indicated, and Inferred resources. The company is advancing the project from PEA to Prefeasibility Study (PFS) stage.