Forge Resources' heavy equipment arrives at Estrella

Executive Summary

• Forge Resources Corp. reports significant operational advancements at its La Estrella coal project in Colombia, including the delivery of a Panzer conveyor system to support automated underground mining and 85% completion of initial mining camp construction.
• The company closed a previously announced non-brokered flow-through private placement, raising $500,000.60 in gross proceeds by issuing 909,092 units at $0.55 per unit.
• The financing includes warrants and finder’s fees, with proceeds designated for Canadian exploration expenses and flow-through mining expenditures.

Key Details

• Equipment Delivery: Forge took delivery of a fully paid-for Panzer conveyor system at the La Estrella site, marking a step toward mechanized and automated underground operations.
• Operational Benefits of Panzer System:
  • Provides safer, more efficient removal of material from underground tunnels.
  • Lowers emissions and fuel costs by reducing reliance on combustion-powered equipment.
  • Enhances operational efficiency and worker safety.
• Camp Construction Status:
  • Initial mining camps are 85% complete.
  • Capacity: 12 rooms accommodating more than 24 personnel.
  • Sanitation: Six dedicated sanitary units installed.
  • Future Expansion: Camp foundations engineered to support a future second floor.
• Infrastructure Development:
  • Construction continuing on a purpose-built mechanical station for energy generation systems and pneumatic compressors.
  • Facility designed to provide reliable power, minimize reliance on external energy, and support multiple daily shifts.
  • Generator room engineered for scalability to support future production increases.
• Financing Details:
  • Transaction: Closed non-brokered flow-through private placement.
  • Units Issued: 909,092 units.
  • Price: $0.55 per unit.
  • Gross Proceeds: $500,000.60.
  • Use of Proceeds: Canadian exploration expenses and flow-through mining expenditures.
• Warrant Terms:
  • Each unit includes one flow-through common share and one-half of one transferable non-flow-through common share purchase warrant.
  • Exercise Price: $0.70 per warrant share.
  • Term: 36 months following issuance.
• Finder’s Fees:
  • Cash commission: $35,000.04.
  • Warrants issued: 63,636 warrants.
  • Warrant Exercise Price: $0.55 per share.
  • Warrant Term: 36 months from closing.
• Regulatory Holds: All securities subject to a statutory hold period of four months and one day from issuance.

Notable Quotes

• "We are extremely encouraged by the progress towards our revenue-generating bulk sample program at our coal project. The addition of this heavy equipment represents an important step in advancing La Estrella toward efficient, mechanized, automated operations in Colombia. At the same time, the construction of our mining camps ensures we can accommodate a growing work force that operates around the clock, three shifts per day -- improving both efficiency and the rate of advance." — P.J. Murphy, Chief Executive Officer