Metalsource closes $1.02-million private placement

Executive Summary

• Metalsource Mining Inc. closed a non-brokered private placement on December 31, 2025, raising $1.02 million in gross proceeds.
• The offering consisted of 3.4 million units issued at $0.30 per unit, with each unit comprising one common share and one-half of one transferable share purchase warrant.
• Eric Sprott, via 2176423 Ontario Ltd., subscribed to the entire offering, increasing his beneficial ownership to approximately 17.5% of outstanding shares on a non-diluted basis.

Key Details

• Transaction Structure: Non-brokered private placement.
• Gross Proceeds: $1.02 million.
• Units Issued: 3.4 million units.
• Price Per Unit: $0.30.
• Warrant Terms: Each unit includes one-half of one transferable share purchase warrant. Each warrant allows the holder to acquire one additional common share at an exercise price of $0.40 for a period of two years from the closing date.
• Subscriber: Eric Sprott (through 2176423 Ontario Ltd.) acquired all 3.4 million units for $1.02 million.
• Pre-Offering Ownership: Mr. Sprott beneficially owned or controlled 7.5 million shares and 3.75 million warrants (approx. 12.7% non-diluted, 17.9% partially diluted).
• Post-Offering Ownership: Mr. Sprott now beneficially owns or controls 10.9 million shares and 5.45 million warrants (approx. 17.5% non-diluted, 24.1% partially diluted).
• Use of Proceeds:
  • Advance exploration at the Silver Hill and Byrd-Pilot projects in North Carolina (primary focus: expanding Silver Hill's silver potential).
  • Continue work on the Aruba manganese project in Botswana.
  • General working capital.
• Regulatory Filings: An early warning report regarding the ownership change will be filed on SEDAR+.

Notable Quotes

• "Mr. Sprott has a long-term view of the investment, and may acquire additional securities, including on the open market or through private acquisitions, or may sell the securities, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors."