Forge continues camp construction at La Estrella

Executive Summary

• Forge Resources Corp. is advancing its La Estrella coal project in Colombia through significant infrastructure construction (camps and mechanical station) and personnel expansion to enable three-shift operations.
• The company announced a flow-through private placement of up to 1,818,182 units at $0.55 per unit, raising up to $1 million in gross proceeds for Canadian exploration and mining expenditures.
• Subsidiary Aion Mining Corp. will sell up to 5,984,750 common shares in Forge to raise capital for the La Estrella project, with sales priced at no less than 80% of the market price.

Key Details

• Infrastructure Construction:
  • Mining camps are 55% complete; designed for 12 rooms accommodating over 24 people with six sanitary units.
  • Camp foundations engineered to support a future second floor for expansion.
  • New mechanical station under construction to house compressor and energy generation plant, ensuring stable power for underground operations and supporting multiple shifts.
• Personnel:
  • Hired Claudia Patricia Gutierrez Santamaria as mining engineer and shift boss for the third shift.
  • Appointment enables three-shift daily operations to improve advance rates.
• Flow-Through Private Placement:
  • Units: Up to 1,818,182 units.
  • Price: $0.55 per unit.
  • Gross Proceeds: Up to approximately $1,000,000.
  • Composition: Each unit consists of one flow-through common share and one-half of one transferable non-flow-through share purchase warrant.
  • Warrant Terms: Each warrant allows acquisition of one non-flow-through common share at $0.70 per share for 36 months from issuance.
  • Use of Proceeds: Canadian exploration expenses and flow-through mining expenditures.
• Corporate Share Sale (Aion Mining):
  • Subsidiary Aion Mining Corp. (80% owned by Forge) will sell up to 5,984,750 common shares held in Forge.
  • Sale Conditions: Off-market sales at no less than 80% of the trading price on the CSE at the time of trade; not sold to non-arm's-length parties.
  • Use of Proceeds: Support companies and further the La Estrella coal project (eight known seams of metallurgical and thermal coal).
• Project Status:
  • La Estrella is a fully permitted flagship coal project in Santander, Colombia.
  • Contains eight known seams of metallurgical and thermal coal.

Notable Quotes

• "The construction of our mining camps and mechanical station, together with the hiring of mining engineer Claudia Patricia Gutierrez Santamaria, represent significant milestones for the La Estrella project. These investments not only ensure the well-being of our work force and provide reliable energy for operations, but also expand our capacity to three shifts per day, improving both efficiency and the rate of advance." — P.J. Murphy, Chief Executive Officer