Bitterroot closes $1.81M first tranche of placement

Bitterroot Resources Ltd. (BTT) has closed the first tranche of a non-brokered private placement, raising $1.81 million CAD from the sale of 15,137,883 units at $0.12 per unit. The proceeds are designated for approximately 10,000 metres of drilling across 15 to 20 holes at the company’s 51%-owned LM nickel-copper project in Michigan, alongside general working capital.

Each unit includes one common share and one-half common share purchase warrant. The warrants are exercisable at $0.20 and expire on October 8, 2028, with an acceleration clause triggered if the 20-day volume-weighted average price exceeds $0.40.

Concurrently, the company secured up to $5.22 million USD in non-dilutive Defense Production Act (DPA) Title III funding from the U.S. Department of War. This funding is intended to reimburse 50% of approved exploration costs at the LM project. The closing follows the September 16 announcement of the placement and the September 15 DPA award.

Bitterroot Resources Ltd. (BTT) closed the first tranche of its financing on September 16, providing immediate liquidity to execute the planned Q4 2026 drilling program at the LM project. The deal represents a strategic win by effectively halving the cash cost of capital for the LM project, though it is reimbursement-based and requires a 50/50 cost-share with partner Below Exploration Inc., introducing administrative and partner-liquidity risks.

The financing is dilutive, with the issuance of 15.14M units at $0.12 representing a ~12% dilution to the existing 126.76M share count. Despite the capital raise, the company remains in a precarious financial position. The MD&A explicitly states a going concern basis, with only $69,152 in cash and a $755,846 working capital deficiency as of July 31, 2026. The $1.81M injection is necessary but insufficient to cover long-term needs without further capital raises or successful DPA reimbursements.

Additionally, the Nighthawk project in Nevada was written down by $1.24M in Q2 2026 due to lack of economic mineralization, shifting the company's entire focus and risk profile to the LM project.

Bitterroot Resources Ltd. is a pre-revenue exploration company focused on base and precious metals. Its flagship asset is the LM Nickel-Copper Project, located in Michigan's Baraga Basin near Talon Metals' Eagle Mine, the only operating nickel mine in the United States. The company holds a 51% interest in the project through its subsidiary Trans Superior Resources Inc., which serves as the operator, while the remaining 49% is held by Below Exploration Inc.

Historical exploration at the LM project involved 7,565 metres drilled in 26 core holes to a depth of 300 metres. Mineralization, described as disseminated to massive sulphide Ni-Cu-PGM, was identified in 10 of the 26 holes. The company’s current plan targets untested depths between 400 and 700 metres, utilizing borehole electromagnetic surveys to locate high-grade massive sulphide accumulations.

In Nevada, the company’s secondary Nighthawk Gold/Silver Project saw drilling in early 2026 return no significant gold or silver results. This outcome resulted in a $1.24M write-off, and the company is currently reviewing the future of this asset.