Metalsource arranges $4-million private placement

Executive Summary

• Metalsource Mining Inc. has arranged a non-brokered private placement to raise up to $4,000,000 through the issuance of up to 20 million units at $0.20 per unit.
• Eric Sprott is leading the offering with a subscription for 5 million units, totaling $1,000,000.
• Proceeds will be used to advance exploration at the Silver Hill and Byrd-Pilot projects in North Carolina, continue work on the Aruba manganese project in Botswana, and for general working capital.

Key Details

• Offering Size: Up to 20 million units.
• Price: $0.20 per unit.
• Gross Proceeds: Up to $4,000,000.
• Lead Investor: Eric Sprott subscribed for 5 million units for $1,000,000.
• Security Structure: Each unit consists of one common share and one-half of one transferable common share purchase warrant.
• Warrant Terms: Each whole warrant allows the purchase of one additional common share at $0.30 per share for a period of three years.
• Use of Proceeds:
  • Advance exploration at Silver Hill and Byrd-Pilot projects (North Carolina), focusing on expanding Silver Hill's silver potential.
  • Continue work on the Aruba manganese project (Botswana).
  • General working capital.
• Hold Period: Four months and one day from issuance.
• Finder's Fees: The company may pay finders' fees in accordance with Canadian Securities Exchange policies.

Notable Quotes

• "With the signing of the definitive agreement, Metalsource is now well positioned to move forward aggressively. Our immediate focus is Silver Hill -- a historic silver mine where previous operators outlined mineralized lenses but never systematically drilled for silver. We now have the opportunity to modernize that work, verify and expand known silver zones, and begin building an updated mineral resource estimate in North Carolina. The financing will allow us to take Silver Hill from a historic curiosity to a modern silver growth story. At the same time, Byrd-Pilot provides us with large-scale gold-copper porphyry potential, giving shareholders exposure to both high-grade silver expansion and district-scale discovery. This financing represents the next step in unlocking the full value of our U.S. portfolio for shareholders," said Joseph Cullen, chief executive officer.