Cruz Battery Metals arranges $500,000 private placement

Executive Summary

• Cruz Battery Metals Corp. announced a private placement financing to raise up to $500,000 to fund work programs on its Nevada lithium projects and the newly acquired Sterling South gold-copper project in Ontario.
• The company recently acquired the Sterling South project (42 claim units, ~2,500 acres) directly bordering Sterling Metals Corp.'s recent high-grade copper discovery at the Soo copper project.
• Management cites renewed investor interest in the lithium sector, driven by U.S. government involvement in Lithium Americas' Thacker Pass mine, as the rationale for proceeding with the Solar lithium project work program to target a maiden resource estimate in H1 2026.

Key Details

• Financing Structure:
  • Gross Proceeds: Up to $500,000.
  • Units Issued: Up to 15,337,423 units.
  • Price: 3.26 cents per unit.
  • Composition: Each unit consists of one common share and one transferable share purchase warrant.
  • Warrant Terms: Each warrant allows the holder to acquire one additional share at $0.05 per share.
  • Warrant Expiry: Five years from the closing of the financing.
  • Use of Proceeds: General working capital and funding work programs on Nevada lithium projects and the Sterling South gold-copper project.
  • Hold Period: Statutory hold period of four months and one day after closing.
  • Finders' Fees: May be paid to eligible finders.
• Asset Acquisition (Sterling South):
  • Target: Sterling South gold-copper project.
  • Location: Ontario, directly bordering Sterling Metals Corp.'s Soo copper project.
  • Size: 42 claim units, approximately 2,500 acres.
  • Context: Acquired on Oct. 6, 2025. Management notes Sterling Metals announced a high-grade copper discovery on Sept. 29, 2025, intersecting 262.5m of 1.05% CuEq (including 68.3m of 3.25% CuEq and 9.3m of 19.8% CuEq). Cruz cannot verify these results beyond public information.
• Operational Updates:
  • Solar Lithium Project (Nevada): Directly borders American Lithium Corp. Cruz has discovered lithium in all 14 drill holes across the first four phases of drilling.
  • Goal: Produce a maiden resource estimate for the Solar project in the first half of 2026.
  • Market Context: Reference made to American Lithium Corp.'s $9.4M private placement (Aug. 18, 2025) and share price high of $1.29 (Oct. 10, 2025).
• Regulatory/Exemptions:
  • Distribution made pursuant to British Columbia Instrument 45-536 (Exemption from Prospectus Requirement for Certain Distributions Through an Investment Dealer).
  • Company confirms no material facts or changes have been withheld from general disclosure.

Notable Quotes

• "Domestic lithium attention seems to have renewed since the U.S. government has agreed to take a stake in Lithium Americas' Thacker Pass lithium mine in Nevada... management feels this is an opportune time to proceed with a work program on the Solar lithium project... with the goal of producing a maiden resource estimate in the first half of 2026." — James Nelson, President
• "Funds from this financing will strengthen our working capital position, providing us with greater flexibility to plan preliminary work programs on the Sterling South gold/copper project directly bordering Sterling Metals Corp.'s recent discovery in Ontario." — James Nelson, President