Chesapeake Gold closes $17.25-million bought deal

Executive Summary

• Chesapeake Gold Corp. has closed a $17.25 million bought deal public offering and a $2.88 million non-brokered private placement, raising total gross proceeds of approximately $20.13 million.
• The public offering consisted of 4,107,225 units at $4.20 per unit, including the full exercise of the overallotment option, led by Red Cloud Securities Inc.
• The private placement was completed with Eric Sprott’s entity (2176423 Ontario Ltd.) investing $2.88 million for 685,000 units, subject to a hold period until May 28, 2026.

Key Details

• Total Gross Proceeds: $20,127,345 (aggregate of public offering and private placement).
• Public Offering Details:
  • Structure: Bought deal public offering.
  • Units Sold: 4,107,225 units.
  • Price: $4.20 per unit.
  • Gross Proceeds: $17,250,345.
  • Overallotment: Exercised in full.
  • Underwriter Commission: $993,126.37 paid in cash to underwriters.
  • Underwriter Warrants: 236,458 common share purchase warrants issued to underwriters (non-transferable, exercisable at $5.65 until Jan 27, 2029).
  • Lead Underwriter: Red Cloud Securities Inc. (Joint Bookrunner: Cantor Fitzgerald Canada Corp.).
• Private Placement Details:
  • Investor: 2176423 Ontario Ltd. (beneficially owned by Eric Sprott).
  • Units Sold: 685,000 units.
  • Price: $4.20 per unit.
  • Gross Proceeds: $2,877,000.
  • Hold Period: Common shares and warrants subject to hold period expiring May 28, 2026.
  • Finders' Fees: None paid.
• Warrant Terms (Both Offerings):
  • Each unit consists of one common share and one-half of one common share purchase warrant.
  • Each warrant entitles the holder to purchase one common share at an exercise price of $5.65.
  • Warrants expire on January 27, 2029.
• Use of Proceeds: Advancement of proprietary oxidative leach technology, the Metates project, the Lucy project, and general working capital.
• Regulatory/Compliance:
  • Public offering completed pursuant to prospectus supplement dated Jan 14, 2026, to short form base shelf prospectus dated Feb 23, 2024.
  • Private placement subject to final approval of the TSX-V.
  • Both transactions involved related party transactions (insiders and Eric Sprott) relying on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101.
  • Material change report to be filed within 21 days of closing.

Notable Quotes

• No direct quotes from the CEO/President were included in the provided text.