Muzhu Mining Announces Closing Of Oversubscribed Second Tranche Of Financing

Executive Summary

• Muzhu Mining closed the second tranche of its non‑brokered offering, raising $250,000 by issuing 3,125,000 flow‑through units at $0.08 per unit.
• Total proceeds to date from both tranches now equal $500,000; the overall offering targets up to $1,000,000 in combined Units and FT Units.
• Net proceeds will fund option payments for the Everett titanium property, working capital, surface exploration, metallurgical testing, and verification of historic work at Everett, with diamond drilling planned pending permitting.

Key Details

• Second Tranche Gross Proceeds: $250,000.
• Units Issued in Second Tranche: 3,125,000 FT Units @ $0.08 each.
• Aggregate Raised to Date (both tranches): $500,000.
• Offering Structure (total target up to $1M):
• Up to $500,000 of regular Units at $0.06 per Unit (each Unit = 1 common share + 1 warrant).
• Up to $500,000 of FT Units at $0.08 per FT Unit (each FT Unit = 1 flow‑through common share + 1 warrant).
• Warrant Terms: Each warrant (both regular and FT) allows purchase of one common share at $0.10 per share for up to 24 months after closing.
• Use of Proceeds – Regular Units: Initial option payment for the Everett titanium property, working capital, general corporate purposes.
• Use of Proceeds – FT Units: Surface exploration, metallurgical testing, verification of historic work at Everett; diamond drilling planned once permitting is obtained.
• Flow‑Through Tax Treatment: All gross proceeds from FT Units will be used for Canadian Exploration Expenses (CEE) as “flow‑through critical mineral mining expenditures” before 31 Dec 2026 and renounced by 31 Dec 2025. Muzhu will indemnify subscribers if CRA reduces qualifying expenditures.
• Final Tranche Anticipated: Expected to close in January 2026, subject to regulatory approvals (including CSE).
• Finder’s Fees & Warrants: $10,000 paid in finder’s fees; 125,000 Finder’s Warrants issued (exercise price $0.06 per Unit, 24‑month term).
• Holding Period: All securities from the offering subject to a four‑month‑plus‑one‑day hold period from closing date.

Notable Quotes

“The successful close of our second tranche provides essential capital to advance the Everett titanium project and supports continued exploration activities across our portfolio,” – Dwayne Yaretz, CEO, Muzhu Mining Ltd.