Juggernaut closes $11.5-million bought deal offering

Executive Summary

• Juggernaut Exploration Ltd. has closed a bought deal private placement raising approximately C$11.5 million in gross proceeds, including the full exercise of the underwriter's over-allotment option.
• The company issued 4,492,187 units at $2.56 per unit, with proceeds designated for exploration expenses on its flagship Big One project in British Columbia, structured as flow-through shares for tax purposes.
• The offering was led by Stifel Canada, with net proceeds (after commissions) to be used for Canadian exploration expenses and critical mineral tax credits, with no hold period on the issued units.

Key Details

• Gross Proceeds: Approximately C$11.5 million.
• Units Issued: 4,492,187 units.
• Issue Price: $2.56 per unit.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms (Investors): Each warrant entitles the holder to purchase one common share at an exercise price of $2.08 for a period of 24 months.
• Flow-Through Status: Shares and warrants qualify as flow-through shares under the Canadian Income Tax Act.
• Use of Proceeds: Exploration expenses qualifying as Canadian exploration expenses, flow-through critical mineral mining expenditures (for the critical mineral exploration tax credit), and B.C. flow-through mining expenditures on the Big One project.
• Expense Renunciation Schedule: Expenses to be incurred on or before Dec. 31, 2027, and renounced to subscribers with an effective date no later than Dec. 31, 2026.
• Underwriter: Stifel Canada served as sole bookrunner and lead underwriter.
• Regulatory Approval: Received final approval from the TSX Venture Exchange.
• Exemption: Issued under the listed issuer financing exemption (National Instrument 45-106); no hold period applies to the issued units.
• Underwriter Commission: Cash commission of $689,999.92 paid from the company's existing cash on hand (not from gross proceeds).
• Broker Warrants: 269,531 non-transferable broker warrants granted to the underwriter.
• Broker Warrant Terms: Each entitles the holder to acquire one common share at $1.81 for 24 months.
• Broker Warrant Hold Period: Subject to a hold period in Canada expiring four months and one day from the date of the release.

Notable Quotes

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