MINAURUM GOLD INC. ANNOUNCES C$10.0M BEST EFFORTS PRIVATE PLACEMENT

On December 3, 2025, Minaurum Gold Inc. announced its intention to raise up to C$10.0 million through a "best efforts" private placement. The financing, led by Cormark Securities Inc., will consist of up to 27,778,000 units priced at C$0.36 each. Every unit includes one common share and one-half of a common share purchase warrant. Each full warrant allows the holder to buy one additional share at C$0.50 for 24 months.

The proceeds are earmarked for exploration at the company's flagship Alamos silver project, specifically to fund the recently announced 25,000-metre Phase II drill program, as well as for property-related expenses and general working capital. The offering is being conducted under the Listed Issuer Financing Exemption, which means the shares will be free-trading in Canada upon issuance.

The announcement of a C$10.0 million financing is a necessary and logical step for Minaurum, but it is routine for an exploration company at this stage.

• Positive: The financing, if successful, will fully fund the company's ambitious 25,000-metre Phase II resource expansion drill program at the Alamos project. This program is the company's primary near-term catalyst. Securing the capital to execute this plan removes funding uncertainty and allows the company to maintain its exploration momentum, which has been driven by a series of strong drill results over the past year.

• Negative/Risks:

  • Dilution: The offering is dilutive. If fully subscribed, it will add approximately 27.8 million shares and 13.9 million warrants to an already large capital structure. The company had ~437 million shares outstanding as of its last financials, and this will increase it to over 465 million.
  • Pricing: The C$0.36 issue price represents a 10% discount to the previous day's closing price of C$0.40, which is a standard but unattractive feature for existing shareholders.
  • Structure: This is a "best efforts" financing, not a "bought deal," meaning the agent does not guarantee that the full C$10.0 million will be raised. This introduces a risk that the company may raise less than anticipated, potentially impacting the scope or timeline of the Phase II program.
  • Warrant Overhang: The addition of nearly 14 million warrants at C$0.50 adds to the significant existing warrant overhang, which can create future resistance for the stock price.
  • Flipping Potential: Since the units are being issued under an exemption that makes them free-trading, there is a risk of short-term selling pressure as financing participants may sell their shares immediately to lock in profits from the discounted price.

Historical Context: The company has systematically advanced its Alamos project, delivering consistently strong drill results throughout 2025 (e.g., Feb 13, Feb 27, May 22, Oct 16, Oct 29). In June, it strengthened its technical team with key hires from SilverCrest Metals, a notable success story in Mexican silver exploration. It then raised C$9.2 million in July at C$0.25 to fund the initial Phase I resource definition drilling. On November 27, the company announced the completion of Phase I and the immediate commencement of a much larger Phase II program. This financing, announced less than a week later, is the direct funding mechanism for that program.

While the financing is essential, it continues a pattern of significant shareholder dilution. The key question is whether the results from the upcoming drill program and maiden resource will be substantial enough to create value that outweighs this dilution. Given the circumstances, the financing is a routine and positive development as it enables planned work, but it lacks any game-changing elements like the introduction of a strategic investor.

Minaurum Gold Inc. is a mineral exploration company focused on precious and base metals in the Americas. Its flagship asset is the 100%-owned Alamos silver project located in Sonora, Mexico. The project is permitted for production and contains numerous high-grade silver vein structures with historical production. The company's strategy is to define a maiden mineral resource at Alamos through systematic drilling. In 2025, Minaurum diversified its portfolio by acquiring the Lone Mountain CRD (carbonate replacement deposit) project in Nevada, USA.