Sego Resources Completes $625,800 Financing

Executive Summary

• Sego Resources received conditional TSX Venture Exchange approval to close the final tranche of its $625,800 financing announced earlier in 2025.
• The company will issue 7,200,000 Flow‑Through Units at $0.025/unit ($180,000) and 11,990,000 Non‑Flow‑Through Units at $0.02/unit ($239,800), bringing total gross proceeds to $625,800.
• Proceeds are earmarked for exploration at the Miner Mountain Project, general working capital, and will generate eligible BC Mining Exploration Tax Credits; insiders subscribed to a portion of the placement, making it a related‑party transaction.

Key Details

• Units Issued – Flow‑Through: 7,200,000 units @ $0.025 per unit → $180,000 gross proceeds.
• Each unit = 1 flow‑through common share + 1 warrant (right to purchase an additional share at $0.05 for two years).
• Units Issued – Non‑Flow‑Through: 11,990,000 units @ $0.02 per unit → $239,800 gross proceeds.
• Each unit = 1 common share + 1 warrant (right to purchase an additional share at $0.05 for three years).
• Total Gross Proceeds of Financing: $625,800 (including first tranche of 10,300,000 Non‑Flow‑Through Units issued on Aug 7 2025 for $206,000).
• Hold Period: All securities subject to a statutory four‑month plus one‑day hold period, expiring March 5 2026.
• Use of Proceeds:
• Exploration expenses at the Miner Mountain Project (expected > $200,000).
• General working capital.
• Flow‑through portion qualifies for Canadian exploration expense tax treatment; excess expenditures eligible for a 30% BC Mining Exploration Tax Credit.
• Finder’s Fees: $15,750 cash plus broker warrants (87,500 three‑year warrants @ $0.05 and 280,000 two‑year warrants @ $0.05). Warrants also subject to the same hold period expiring March 5 2026.
• Insider Subscription / Related‑Party Transaction:
• Director Paul McGroary subscribed for 1,120,000 units.
• Elliot Strashin and Strashin Developments Ltd. (deemed insider) subscribed for 4,320,000 units.
• Total insider subscription: 5,440,000 units.
• Regulatory Exemptions Utilized: Section 5.5(a) (FMV ≤ $2.5 M) and 5.5(c) (cash distribution) of MI 61‑101; no formal valuation or minority shareholder approval required.

Notable Quotes

• “The proceeds of the financing will be used for exploration at the Company's Miner Mountain Project and for general working capital.” – J. Paul Stevenson, CEO.