Fredonia Mining arranges $5-million private placement

Executive Summary

• Fredonia Mining Inc. announced a best-efforts private placement to raise up to C$5 million in gross proceeds.
• The offering consists of 12.5 million units priced at C$0.40 per unit, with each unit comprising one common share and one-half of one common share purchase warrant.
• Net proceeds are intended for the exploration and advancement of the El Dorado-Monserrat project in Argentina and for general corporate and working capital purposes.

Key Details

• Gross Proceeds: Up to approximately C$5 million.
• Unit Price: C$0.40 per unit.
• Units Issued: 12.5 million units.
• Warrant Terms: Each unit includes one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of C$0.56.
• Warrant Expiry: 36 months following the closing date.
• Over-Allotment Option: The sole agent has an option to increase the offering size by up to C$1 million (raising additional gross proceeds) prior to the closing date.
• Use of Proceeds: Exploration and advancement of the El Dorado-Monserrat project (Santa Cruz province, Argentina) and general corporate/working capital purposes.
• Regulatory Framework: Conducted pursuant to Section 5A.2 of National Instrument 45-106 (Listed Issuer Financing Exemption).
• Jurisdictions: Canada (excluding Quebec), United States, and other jurisdictions outside Canada and the US.
• Hold Period: No hold period in Canada for unit shares, warrant shares, or shares issued upon exercise of warrants.
• Expected Closing Date: On or about February 4, 2026.
• Final Closing Deadline: No later than the 45th day following the date of the news release for units issued under the listed issuer financing exemption.
• Conditions Precedent: Negotiation of an agency agreement and receipt of necessary approvals, including TSX Venture Exchange approval (if applicable).
• Sole Agent: Cormark Securities Inc.

Notable Quotes

• No direct quotes from management were included in the provided text.