Aero Energy closes $1-million private placement

Executive Summary

• Aero Energy Ltd. has closed its previously announced non-brokered private placement of charity flow-through (CFT) units, raising $1 million in gross proceeds.
• The company also announced that a separate, larger private placement of subscription receipts (up to $10.5 million) is expected to close around March 31, 2026, subject to regulatory approvals.
• Proceeds from the CFT offering will be used for eligible Canadian exploration expenses related to the company's projects in Saskatchewan.

Key Details

• CFT Unit Closing: Closed non-brokered private placement of 1,694,916 charity flow-through (CFT) units.
• Pricing: Sold at 59 cents per CFT unit.
• Gross Proceeds: $1 million.
• Unit Composition: Each CFT unit consists of one flow-through common share and one share purchase warrant.
• Warrant Terms: Each warrant is exercisable to acquire one common share at an exercise price of 60 cents.
• Warrant Expiry: March 27, 2028.
• Tax Status: CFT shares qualify as flow-through shares under the Income Tax Act (Canada) and eligible flow-through shares under the Mineral Exploration Tax Credit Regulations, 2014 (Saskatchewan).
• Subscription Receipt Offering Status: The previously announced offering of up to 26.25 million subscription receipts at 40 cents per receipt (gross proceeds up to $10.5 million) is expected to close on or around March 31, 2026.
• Conditions for Subscription Receipt Closing: Subject to regulatory and other approvals, including TSX Venture Exchange approval.
• Use of Proceeds (CFT): Funds to be used for:
  • Eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.
  • Eligible flow-through mining expenditures related to projects in Saskatchewan.
• Expenditure Timeline: Qualifying expenditures to be incurred on or before December 31, 2027.
• Renunciation Date: Qualifying expenditures to be renounced in favour of subscribers effective December 31, 2026.