Salazar Resources Announces Non-Brokered Private Placement of Up to $3.5 Million

Salazar Resources Limited (SRL) announced a non-brokered private placement of up to 10 million units at $0.35 per unit, targeting gross proceeds of up to $3,500,000. Each unit consists of one common share and one-half of a common share purchase warrant. The warrants are exercisable at $0.60 per share for a period of two years from closing.

All securities carry a four-month hold period pending TSX Venture Exchange approval. Insiders may participate in the financing, and finder's fees may be paid on a portion of the transaction. Net proceeds are designated for general working capital and ongoing exploration activities across the company's Ecuadorian portfolio.

Salazar Resources Limited reported a working capital deficit of approximately $916,000 as of June 30, 2026, with cash on hand of roughly $519,000. To address this liquidity position, the company executed a $3.5 million placement priced at $0.35 per share. This price represents a modest discount to the recent trading range of $0.36 to $0.44, a structure standard for junior explorers seeking to raise capital quickly. The transaction introduces near-term dilution but is intended to fund overhead and exploration budgets through the next 12 to 18 months.

The placement involves the issuance of up to 10 million shares, representing approximately 3.8% dilution to the company’s existing share count of roughly 265 million. The deal also includes 5 million accompanying warrants with an exercise price of $0.60. As the current market price is approximately $0.37, these warrants are out-of-the-money and pose no immediate selling pressure, though they represent latent future dilution if the stock appreciates significantly or if the warrants are exercised.

Strategically, the financing supports Salazar Resources Limited’s exploration pipeline, which includes the Monja, Santiago, Tarqui-Quimi, and El Tigre projects. This activity continues while the company awaits the targeted July 2027 commissioning of the El Domo project, which remains fully funded by Silvercorp Metals. Salazar’s 25% carried interest in El Domo remains intact. The capital raise addresses a known liquidity need without introducing new assets, partnerships, or operational milestones.

Salazar Resources Limited (SRL) is a Canadian junior exploration and development company focused on operations in Ecuador. The company holds a 25% fully carried interest in the El Domo copper-gold-silver-zinc-lead project, which is operated by Silvercorp Metals, which retains a 75% interest. Additionally, Salazar owns 100% of several exploration-stage projects, including Monja, Santiago, Tarqui-Quimi, El Tigre, and Pijili.

The El Domo project is located in the Bolívar and Los Ríos provinces of Ecuador and is currently under construction, with the company targeting first commercial concentrates in July 2027. An NI 43-101 technical report from December 2025 outlines an economic profile featuring an after-tax NPV (8%) of US$573M, an IRR of 45%, and a payback period of approximately three years. The project contains reserves of 7.13 Mt grading 1.93% Cu, 2.55 g/t Au, and 2.63% Zn. Salazar’s 25% interest is fully carried through to production with no development financing obligations, and cash flows will be distributed after Silvercorp recovers its investment. There are approximately 8 million tonnes of additional mineralized material remaining in Measured & Indicated and Inferred categories.

Salazar’s exploration portfolio includes the Monja project, a 1.5 km x 0.5 km copper-gold porphyry system with rock samples up to 1.71% Cu and 0.99 g/t Au. The Santiago project has been consolidated to 100% ownership, with historic drilling intersecting 323m @ 0.23% Cu and 0.40 g/t Au. The Tarqui-Quimi project features high-grade epithermal veins, with grades up to 100 g/t Au and 1,000 g/t Ag, as well as a large Cu-Mo porphyry system. The El Tigre project contains a gold-bearing barite horizon, with 45m @ 8.94 g/t AuEq, and exhibits geological similarities to the Tambo Grande VMS district.