Sun Peak Closes First Tranche and Increases Non-Brokered Private Placement

Sun Peak Metals Corp. (PEAK) has closed the first tranche of its non-brokered private placement, raising gross proceeds of $9,709,358. The company increased the total offering size from $10 million to $12 million due to strong investor demand. The offering consists of 24,273,396 units priced at $0.40 per unit. Each unit comprises one common share and one-half of a common share purchase warrant. Warrants are exercisable at $0.55 per share for two years, with an accelerated expiry clause if the TSXV VWAP exceeds $1.10 for 10 consecutive days.

Net proceeds are designated for exploration in Saudi Arabia and Ethiopia, offering costs, and general working capital. Finder's fees of $103,440 were paid in cash, with additional non-transferable finder's warrants and units issued. Securities are subject to a four-month-and-one-day hold period. The transaction remains subject to TSXV and regulatory approvals.

Sun Peak Metals Corp. (PEAK) completed the first tranche of its financing at $9.7 million, with the offering subsequently increased to $12 million. This follows initial announcements made on September 17 and September 23, 2026, which proposed a $5 million offering that was later raised to $10 million and then to $12 million. The closure of the first tranche and the increase in total size indicate strong institutional and retail demand.

The capital raise addresses the going concern disclosure issued in the Q1 2026 financials, where management stated that current working capital of $4.55 million would be insufficient to complete planned exploration over the next twelve months. Proceeds will fund maiden drilling programs at Safra and Halahila, as well as continued exploration across the company’s 1,072 km² Saudi Arabian portfolio.

The transaction involves the issuance of up to 30 million new units at $0.40. An accelerated warrant expiry clause provides a mechanism to reduce the overhang if the stock price appreciates significantly.

Sun Peak Metals Corp. is an exploration company focused on advancing gold and copper volcanogenic massive sulphide (VMS) opportunities in the Arabian-Nubian Shield. The company controls a 1,072 km² land package across 13 exploration licenses in Saudi Arabia, acquired through the Round 9 licensing auction and previous acquisitions. Flagship projects include the Safra VMS Project (93 km²), Halahila VMS Project (35 km²), and Al Miyah Project (235 km²).

Recent maiden drilling at Safra and Halahila returned high-grade polymetallic intercepts, including copper, zinc, gold, and silver, confirming the presence of VMS systems. The company also holds the Shire Project in Ethiopia, which is currently on care and maintenance due to force majeure. Management has a strong track record in the region, and the company benefits from Saudi government mining incentives, including exploration grants and co-funding opportunities.