Mustang Announces Closing of Non-Brokered Private Placement

Executive Summary

• Mustang Energy Corp. has closed a non-brokered private placement of 2,000,000 flow-through units at $0.09 per unit, raising aggregate gross proceeds of $180,000.
• The proceeds are designated for the exploration of the Company’s uranium projects in the Athabasca Basin, specifically to incur Canadian exploration expenses and flow-through critical mineral mining expenditures.
• The offering includes warrants exercisable at C$0.15, and finder’s fees were paid to Red Cloud Securities Inc. in cash and additional warrants.

Key Details

• Transaction Structure: Non-brokered private placement of 2,000,000 flow-through units ("FT Units").
• Price: $0.09 per FT Unit.
• Gross Proceeds: $180,000.
• Unit Composition: Each FT Unit consists of one flow-through common share and one-half of one common share purchase warrant.
• Warrant Terms: Each whole warrant entitles the holder to purchase one non-flow-through common share at an exercise price of C$0.15. The warrants are exercisable for a period of two years following the issue date.
• Use of Proceeds: Exploration of uranium projects in the Athabasca Basin, Saskatchewan. Proceeds will be used to incur "Canadian exploration expenses" and "flow-through critical mineral mining expenditures" under the Income Tax Act (Canada).
• Renunciation: The Company intends to renounce exploration expenses to purchasers with an effective date no later than December 31, 2025, in an aggregate amount not less than the gross proceeds raised.
• Hold Period: Securities issued are subject to a hold period expiring on May 1, 2026.
• Finder’s Fees: Paid to Red Cloud Securities Inc. consisting of:
  • $12,600 in cash.
  • 140,000 share purchase warrants ("Finder’s Warrants").
• Finder’s Warrant Terms: Each warrant is exercisable into one common share at $0.15 per share until December 31, 2027. Finder’s Warrants are subject to a hold period until May 1, 2026.

Notable Quotes

• "Nicholas Luksha, CEO and Director" (Signed on behalf of the board of directors)