Domestic Metals closes first tranche of financing

Executive Summary

• Domestic Metals Corp. has closed the first tranche of its private placement, raising gross proceeds of approximately $3.14 million.
• The company secured an extension to close the final subsequent tranche of the offering, with a new deadline of April 13, 2026.
• The transaction includes a related-party component involving a director and utilizes specific exemptions from formal valuation and minority approval requirements under Multilateral Instrument 61-101.

Key Details

• Transaction Structure: The first tranche consisted of 11,205,505 units issued at a price of $0.28 per unit.
• Gross Proceeds: $3,137,541.40.
• Unit Composition: Each unit comprises one common share and one common share purchase warrant.
• Warrant Terms: Each warrant allows the holder to acquire one additional share at an exercise price of $0.40 per share for a period of three years from issuance.
• Related Party Transaction: 553,570 units were issued to a director and a company where a director is the sole beneficiary. The company relied on exemptions under MI 61-101 (sections 5.5(a) and 5.7(1)(a)) as the fair market value involving interested parties did not exceed 25% of the company's market capitalization.
• Finders' Fees: Finders received 7% in cash and 7% in non-transferable finders' warrants (exercisable at $0.40/share for three years).
  • Ventum Financial Corp.: $2,940 cash and 10,500 warrants.
  • Leede Financial Inc.: $1,411.20 cash and 5,040 warrants.
  • Canaccord Genuity Corp.: $69,171.34 cash and 247,041 warrants.
  • Asty Capital Corp.: $68,600 cash and 245,000 warrants.
• Use of Proceeds: General working capital and exploration and development costs.
• Hold Period: All securities have a hold period of four months and one day.
• Regulatory Status: The offering is subject to final acceptance by the TSX Venture Exchange.
• Extension: The company received an extension to close the final subsequent tranche on or before April 13, 2026.

Notable Quotes

• None provided in the text.