Sterling Metals Announces Fully Allocated Private Placement Of Units And Charity Flow Through Units
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On November 5, 2025, Sterling Metals announced a fully allocated private placement to raise gross proceeds of up to $10,000,000. The financing consists of two parts: - Hard Dollar Units: Up to 3,088,888 units at a price of $1.50 per unit for proceeds of ~$4.63 million. Each unit includes one common share and one common share purchase warrant, exercisable at $3.00 for 24 months. - Charity Flow-Through Units: Up to 2,333,334 units at a price of $2.30 per unit for proceeds of ~$5.37 million. Each unit includes one charity flow-through share and one common share purchase warrant, exercisable at $3.00 for 24 months.
The proceeds from the hard dollar units will be used for general working capital, while the flow-through proceeds will be used for Canadian exploration expenses at the Soo Copper and Adeline projects.
This financing is a Material - Positive event for Sterling Metals. Coming just over a month after their game-changing high-grade copper discovery at the Soo Copper Project (Sept 29, 2025), this financing accomplishes several key objectives from a position of strength: - Fully Funds Expanded Exploration: The company had previously expanded its Phase 2 drill program to a minimum of 6,000 meters. This $10 million raise fully de-risks the company's balance sheet and provides ample capital to aggressively pursue this program and follow up on the discovery. - Favourable Terms: The hard-dollar unit price of $1.50 is slightly above the previous day's closing price of $1.49, and the charity flow-through price of $2.30 is at a significant premium. This indicates very strong investor demand and confidence in the project's potential, allowing the company to raise capital with minimal discount to market. - Strategic Timing: Management has acted swiftly to capitalize on the positive momentum from recent exploration success. Securing this funding ensures that exploration will not be delayed due to capital constraints, allowing for a steady flow of news and progress.
The financing follows a clear and successful progression of news. The initial discovery hole (May 29) demonstrated the project's potential. The follow-up game-changing hole (Sept 29) confirmed high-grade mineralization, leading to an expanded drill program. The discovery of more surface mineralization (Oct 8) expanded the project's scale. This financing is the logical and necessary next step to unlock that potential. While the issuance of over 5.4 million warrants at $3.00 creates a future overhang, this is standard for exploration financings and the strike price is more than double the current share price. The immediate benefit of a full treasury far outweighs this long-term risk.
Sterling Metals Corp. is a Canadian mineral exploration company focused on base and precious metals. Its flagship asset is the 100%-owned Soo Copper Project, located near Sault Ste. Marie, Ontario. The project is prospective for large-scale porphyry copper-molybdenum-gold-silver mineralization.
The company's exploration efforts culminated in a significant high-grade copper discovery in September 2025, intersecting a broad zone of mineralization including 9.3m of 19.98% CuEq. This has established the Soo Copper Project as a nationally significant discovery in a Tier 1 mining jurisdiction with excellent infrastructure. The company also holds the Adeline copper project in Labrador.