Mustang arranges $180,000 private placement

Executive Summary

• Mustang Energy Corp. announced a non-brokered private placement of 2 million critical flow-through units, raising aggregate gross proceeds of $180,000.
• The proceeds are designated for resource exploration expenses, specifically Canadian exploration expenses and flow-through critical mineral mining expenditures, which will be renounced to purchasers by December 31, 2025.
• The offering includes warrants allowing holders to purchase additional shares at 15 cents per share for two years, with closing anticipated by December 31, 2025, subject to regulatory approvals.

Key Details

• Transaction Structure: Non-brokered private placement of "critical flow-through units."
• Gross Proceeds: $180,000.
• Units Sold: 2,000,000 units.
• Price Per Unit: $0.09 per flow-through (FT) unit.
• Unit Composition: Each FT unit consists of:
  • One common share issued on a flow-through basis pursuant to the Income Tax Act (Canada).
  • One-half of one transferable common share purchase warrant.
• Warrant Terms:
  • Each whole FT warrant entitles the holder to purchase one common share on a non-flow-through basis.
  • Exercise Price: $0.15 per warrant share.
  • Duration: Two years following the closing of the offering.
• Use of Proceeds: Incurring resource exploration expenses constituting Canadian exploration expenses (Subsection 66.1(6) of the tax act) and flow-through critical mineral mining expenditures (Subsection 127(9) of the tax act).
• Renunciation: Expenses will be renounced to purchasers with an effective date no later than December 31, 2025, in an aggregate amount not less than the gross proceeds raised.
• Finder: Red Cloud Securities Inc. acting as a finder; fees payable per applicable securities laws and Canadian Securities Exchange policies.
• Closing Conditions: Subject to receipt of all necessary regulatory approvals, including the Canadian Securities Exchange.
• Hold Period: Securities subject to a hold period ending four months plus one day following the date of issue.
• Anticipated Closing Date: December 31, 2025.