Moon River Moly closes $3.6-million offering

Executive Summary

• Moon River Moly Ltd. has closed a $3.6 million best efforts private placement offering, issuing 4,246,716 units at $0.85 per unit.
• The company intends to use the net proceeds to fund baseline environmental and engineering studies for its Davidson molybdenum-copper-tungsten project and the Endako mine, alongside general working capital.
• The transaction involved insider participation by directors and officers, who subscribed for 1,272,416 units, and included specific commission structures for the lead agents.

Key Details

• Gross Proceeds: Approximately $3,609,709.
• Units Issued: 4,246,716 units.
• Price Per Unit: $0.85 CAD.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms (Investors):
  • Exercise Price: $1.15 per share.
  • Expiry: February 26, 2028.
  • Lock-up: Warrants may not be exercised prior to April 27, 2026.
• Agent Compensation:
  • Cash Commission: Approximately $252,670 paid to Canaccord Genuity Corp. (lead agent) and ATB Cormark Capital Markets.
  • Broker Warrants: 297,270 non-transferable warrants issued to agents.
  • Broker Warrant Terms: Exercisable to acquire one unit at $0.85 per unit; expires February 26, 2028.
  • Broker Warrant Hold Period: Four months and one day, expiring June 27, 2026.
• Use of Proceeds:
  • Commence baseline environmental studies for the Davidson project (near Smithers, B.C.).
  • Conduct further engineering studies to advance and derisk the Davidson project (based on the Preliminary Economic Assessment released Dec. 23, 2025).
  • Continue studies to derisk and advance the Endako mine (central British Columbia).
  • General working capital and corporate purposes.
• Insider Participation:
  • Directors and officers subscribed for 1,272,416 units on the same terms as arm's-length investors.
  • Classified as a related party transaction under Multilateral Instrument 61-101.
  • Exempt from formal valuation and minority shareholder approval requirements as the fair market value of securities issued to insiders did not exceed 25% of the company's market capitalization.
• Regulatory Status:
  • Issued under the Listed Issuer Financing Exemption (LIFE) under National Instrument 45-106.
  • Not subject to a statutory hold period in Canada for investor units.
  • Subject to final acceptance by the TSX Venture Exchange.