Norsemont Announces First Tranche Closing of Convertible Debenture Financing

Executive Summary

• Norsemont Mining closed the first tranche of its non‑brokered private placement, issuing US$7.53 million (≈ CAD$10.38 million) of convertible debenture units.
• The offering was amended to increase the total gross proceeds target to up to US$10 million (≈ CAD$13.79 million).
• Proceeds will be used for general working capital, mineral exploration and advancement of the Choquelimpie gold‑silver‑copper project, supporting the 2026 drill program and a proposed stockpile PEA.

Key Details

• Units Issued: 7,529,000 convertible debenture units comprising:
• US$1,000 principal amount per convertible debenture (5.25 % annual interest, three‑year maturity).
• Conversion price of C$0.86 per common share.
• 802 transferable common‑share purchase warrants per unit at C$1.00 exercise price, exercisable for three years from closing.
• Warrants Issued: 6,035,258 warrants in total.
• Gross Proceeds (First Tranche): US$7,529,000 (≈ CAD$10,375,715).
• Amended Offering Target: Up to US$10,000,000 (≈ CAD$13,794,400) with a 30 % over‑allotment option removed.
• Use of Proceeds: General working capital; mineral exploration; advancement of the Choquelimpie project; funding the 2026 drill program and stockpile PEA.
• Gold Purchase Right: Convertible debenture holders may purchase gold from Norsemont at US$3,000 per ounce for up to one year after commercial production, limited to the subscriber’s amount.
• Restriction Period: All securities issued are subject to a four‑month‑plus‑one‑day lock‑up from the closing date.

Notable Quotes

“This significant financing positions the Company to advance its 2026 drill program, progress the Choquelimpie near‑term production strategy, and complete the proposed stockpile PEA.” – Marc Levy, CEO & Chairman, Norsemont Mining Inc.