Xau Resources closes $880,000 tranche of placement

Executive Summary

• Xau Resources Inc. has closed the first tranche of its private placement, raising gross proceeds of $880,000.
• The company issued 3.52 million units at a price of $0.25 per unit, with each unit comprising one common share and one-half of one common share purchase warrant.
• Net proceeds will be used to support exploration at the Noseno gold project, expand the land package in Guyana, repay debt, and strengthen the balance sheet.

Key Details

• Gross Proceeds: $880,000
• Units Issued: 3.52 million units
• Price Per Unit: $0.25
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one additional common share.
  • Exercise Price: $0.40 per share.
  • Expiry Date: June 12, 2027.
  • Accelerated Expiry Condition: If common shares trade above $0.80 for 20 consecutive trading days.
• Statutory Hold Period: Four months and one day from the date of issuance.
• Regulatory Status: Financing remains subject to final approval from the TSX Venture Exchange.
• Finders' Fees:
  • Aggregate cash fees paid: $30,000 (representing 4% of proceeds raised from certain subscribers).
  • Finders' warrants issued: 120,000 warrants.
  • Finder's Warrant Terms: Entitles holder to acquire one common share; expires June 12, 2027, subject to the same accelerated expiry condition ($0.80 for 20 consecutive days).
• Use of Proceeds:
  • Support next phase of exploration at the Noseno gold project.
  • Advance efforts to expand the Guyanese land package.
  • Repay outstanding debt.
  • Strengthen the balance sheet for strategic growth initiatives.