Mosaic Minerals closes $700,700 financing

Executive Summary

• Mosaic Minerals Corp. closed an oversubscribed private placement, raising gross proceeds of $700,700 (a 29% increase over the initial $500,000 target) through the issuance of flow-through and regular units.
• The company simultaneously completed the acquisition of the Golden Island project in Quebec, paying $150,000 in cash and issuing 5 million shares and 2.5 million warrants to three independent prospectors.
• Management intends to use the proceeds for a fully funded drilling campaign on the Golden Island property in the coming winter months, focusing on historical gold-bearing zones and new quartz vein discoveries.

Key Details

• Financing Structure:
  • Issued 6,008,571 flow-through units at $0.07 per unit.
  • Issued 7,320,000 regular units at $0.05 per unit.
  • Total gross proceeds: $700,700.
• Flow-Through Unit Terms:
  • Each unit consists of one common share (flow-through) and one common share purchase warrant.
  • Warrants are exercisable at $0.09 per share for a period of 12 months from issuance.
  • Proceeds used for eligible Canadian exploration expenses on the Golden Island project, qualifying as flow-through mining expenditures.
  • Qualifying expenditures renounced in favor of subscribers effective Dec. 31, 2026.
• Regular Unit Terms:
  • Each unit consists of one common share and one common share purchase warrant.
  • Warrants are exercisable at $0.07 per share for a period of 24 months from issuance.
• Finder’s Fees:
  • Paid 8% in cash ($20,000 total).
  • Issued 285,714 finder warrants to two arm's-length intermediaries.
  • Finder warrants exercisable at $0.07 per share for 24 months.
• Hold Period: All securities subject to a hold period of four months and one day, ending April 30, 2026.
• Golden Island Acquisition Terms:
  • Cash payment: $150,000.
  • Equity issued: 5,000,000 shares and 2,500,000 warrants to three independent prospectors.
• Project Location & Access:
  • Located on Tiblemont Island, accessible year-round by Regional Road 113 connecting Val d'Or and Senneterre.
  • Accessible by boat from Tiblemont Lake boat launch near Senneterre.
  • Site contains remains of the former Tiblemont Island gold mine (discovered 1930s, never reached commercial production).
• Historical Infrastructure & Work:
  • Nearly 3,350 linear meters of trenches dug.
  • Three-compartment vertical shaft sunk to 155 meters.
  • 360-meter-long adit driven into hillside at lake level, connected to shaft at 100-meter level.
  • Underground development extends to 1,800 meters at 360- and 485-meter levels.
  • Five-tonne mill was in operation.
• Historical Resource Estimate (Non-Compliant with NI 43-101):
  • 391,000 tonnes at approximately 2.8 g/t Au.
  • Depth: Just under 60 meters.
  • Indicates several gold-bearing zones near surface suitable for open-pit mining.
• Historical Drilling Results:
  • 1982 Soquem program: 8 drill holes (1,150 meters total), 3 in main zone.
  • Drill hole 82-5: Intersected 4.7 meters grading 1.31 g/t Au (located ~1 km northwest of main zone, associated with same magnetic anomaly as main shaft).
• 2024 Exploration Updates:
  • Numerous quartz veins noted surrounding trenches and former main shaft.
  • Veins appear to form a gold-bearing corridor several tens of meters wide.
  • Gold-bearing zone contacts a high-amplitude magnetic anomaly several kilometers long, trending northwest-southeast.

Notable Quotes

• "We are very happy to close this private placement with interest exceeding our initial expectations. Encouraged by the current structural strength of the gold market, we are now focusing 100 per cent of our efforts on a fully funded drilling campaign to be carried out on the Golden Island property in the coming winter months," said Jonathan Hamel, president and chief executive officer of Mosaic Minerals.