XAU Resources Inc. Announces First Closing of Private Placement

Executive Summary

• XAU Resources closed the first tranche of its private placement, raising $880,000 from the issuance of 3,520,000 units at $0.25 per unit.
• Each unit includes one common share and half a warrant; warrants allow purchase of additional shares at $0.40 until 12 Jun 2027 (with accelerated expiry triggers).
• Net proceeds will fund the next phase of exploration at the Noseno Gold Project, expand the Guyana land package, repay debt, and strengthen the balance sheet.

Key Details

• Gross Proceeds: $880,000
• Units Issued: 3,520,000 (each = 1 common share + ½ warrant)
• Unit Price: $0.25 per unit
• Warrant Terms: Right to acquire one additional share at $0.40; exercisable from issuance date until 12 Jun 2027; accelerated expiry if XAU’s share price > $0.80 for 20 consecutive trading days.
• Finder’s Fees: $30,000 paid (4% of proceeds) and issuance of 120,000 finder’s warrants (each = right to acquire one common share under same terms as above).
• Statutory Hold Period: Four months and one day from issuance date for all securities.
• Regulatory Condition: Final approval pending from the TSX Venture Exchange.
• Use of Proceeds:
• Advance exploration at Noseno Gold Project.
• Expand Guyana land package.
• Repay outstanding debt.
• Strengthen balance sheet and support strategic growth initiatives.

Notable Quotes

(No direct quotes were provided in the release.)