Fredonia Announces Closing of C$11.5M Bought Deal Private Placement Including Full Exercise of Underwriters' Option
Fredonia closes a C$11.5 million bought deal after withdrawing a warrant price cut to preserve its capital structure.
Fredonia Mining Inc. closed a C$11.5 million bought deal private placement on September 23, 2026, issuing 17,692,400 common shares at C$0.65 per share. The underwriters fully exercised their over-allotment option, increasing gross proceeds from the initially announced C$10 million to C$11.5 million. Net proceeds are designated for the exploration and advancement of the El Dorado Monserrat (EDM) Project in Argentina and general corporate and working capital purposes.
The company also announced the withdrawal of its previously announced intention to reduce the exercise price of 4,818,932 outstanding warrants from $1.40 to $0.45 per share. The warrants remain exercisable at $1.40 per common share until April 27, 2027.
Directors and executive officers subscribed for 500,000 shares for C$325,000, constituting a related-party transaction under TSXV Policy 5.9 and MI 61-101. Shares issued to Canadian residents under the Listed Issuer Financing Exemption carry no statutory hold period, while insider shares carry a four-month hold period expiring January 24, 2027.
Fredonia Mining Inc. (FRED) closed a C$11.5 million financing, a direct follow-up to the September 14, 2026 announcement that confirms the company's ability to secure incremental capital at a stable price point. The full exercise of the over-allotment option provides an additional ~C$1.5 million, extending the company's cash runway well into 2027 and mitigating the going-concern uncertainty flagged in the March 31, 2026 MD&A.
The withdrawal of the warrant price reduction marks a notable positive deviation from the December 2025 plan. By keeping the exercise price at $1.40, the company avoids massive dilution, which would have amounted to up to 4.8 million new shares at a steep discount, and preserves shareholder equity value. Insider participation of C$325,000 signals management confidence in the project's near-term trajectory and the current share price.
The news is expected and incremental. It solidifies the capital base required to advance the Preliminary Economic Assessment (PEA) into a Pre-Feasibility Study (PFS) but does not alter the fundamental development timeline or de-risk the project's execution.
Fredonia Mining Inc. is a Canadian exploration and development company focused on the El Dorado Monserrat (EDM) gold-silver project in the Deseado Massif, Santa Cruz Province, Argentina. The project is located approximately 15 km from AngloGold Ashanti's Cerro Vanguardia mine, situating it within a proven, highly prospective gold-silver district. The company holds a consolidated land position of approximately 33,500 hectares, expanded through strategic acquisitions from Pan American Silver Corp. and the Judite property.
The August 31, 2026 Preliminary Economic Assessment (PEA) outlines a 17+ year mine life with an average production of 146,000 oz AuEq per year. Economic highlights from the PEA include a post-tax NPV10 of US$1.5 billion, a 65% post-tax IRR, and initial capital costs of US$346 million. The updated Mineral Resource Estimate (MRE) reports 126.45 Mt of Measured and Indicated resources containing 2.76 moz AuEq, supported by nearly 60,000m of drilling.