Metal Energy closes $9.25-million financing

Executive Summary

• Metal Energy Corp. has closed a previously announced financing raising approximately $9.25 million in aggregate gross proceeds.
• Strategic investors Centerra Gold Inc. and Teck Resources Ltd. participated in the offering, each acquiring approximately 9.9% of the company's issued and outstanding common shares.
• Proceeds will fund the 2026 maiden drill program at the NIV copper-gold-molybdenum project in British Columbia and for general corporate purposes.

Key Details

• Gross Proceeds: Approximately $9.25 million.
• Share Issuance Structure:
  • 8,884,000 common shares issued on a premium flow-through basis at $0.729 per share.
  • 6,200,000 common shares issued at $0.45 per share.
• Warrants and Fees: No warrants were issued; no finders' fees were paid.
• Hold Period: All securities are subject to a statutory hold period of four months plus one day from the date of closing.
• Strategic Shareholders: Centerra Gold Inc. and Teck Resources Ltd. are now strategic shareholders, each holding approximately 9.9% of issued and outstanding common shares.
• Investor Rights Agreements (IRAs): Entered into with Centerra and Teck, granting participation and top-up rights to maintain pro rata ownership so long as ownership remains greater than 5.0% on a non-diluted basis.
• Use of Proceeds (Flow-Through): Gross proceeds from flow-through shares will be used for eligible resource exploration expenses qualifying as Canadian exploration expenses, flow-through critical mineral mining expenditures, and BC flow-through mining expenditures.
• Renunciation Timeline: Qualifying expenditures will be incurred on or before Dec. 31, 2026, with renunciation to initial purchasers effective no later than Dec. 31, 2025.
• Use of Proceeds (Net): To finance the 2026 maiden drill program at the NIV project (fully permitted, drill-ready targets) and for general corporate purposes.
• Regulatory Status: Offering subject to final approval of the TSX Venture Exchange.

Notable Quotes

• "Centerra's and Teck's investment provides important validation and should draw broader market attention to Metal Energy. NIV is a rare project where geological, geochemical and geophysical data align. That convergence explains why two major mining companies have chosen to substantially fund our exploration. We believe the undrilled targets at NIV are among the most prospective in British Columbia in recent years, and Metal Energy plans to drill them in 2026. While still early, we hope to deliver a discovery that justifies the long-term stewardship of this asset," said Stephen Stewart, chairman of Metal Energy.