Norsemont closes $7.52M (U.S.) 1st tranche of financing

Executive Summary

• Norsemont Mining Inc. has closed the first tranche of its non-brokered private placement of unsecured convertible debenture units, raising $7,529,000 (U.S.).
• The company amended the offering terms, increasing the gross proceeds cap from $10-million (Canadian) to $10-million (U.S.).
• Proceeds will be used for general working capital, mineral exploration, and advancement of the Choquelimpie project, including the 2026 drill program and stockpile PEA.

Key Details

• Transaction Structure: Non-brokered private placement of unsecured convertible debenture units.
• Gross Proceeds: $7,529,000 (U.S.) / approximately $10,375,715 (Canadian).
• Securities Issued:
  • Convertible Debentures: Principal amount of $7,529,000 (U.S.).
  • Warrants: 6,035,258 transferable common share purchase warrants issued.
• Debenture Terms:
  • Principal: $1,000 (U.S.) per debenture.
  • Interest Rate: 5.25% per annum.
  • Maturity: Three years from the closing date.
  • Conversion Price: 86 Canadian cents per conversion share.
  • Gold Purchase Right: Upon commercial production, subscribers may purchase gold at a fixed price of $3,000 (U.S.) per ounce for one year, up to the subscription amount.
• Warrant Terms:
  • Exercise Price: $1 (Canadian) per warrant share.
  • Term: Three years from the closing date.
  • Rights: Each warrant entitles the holder to purchase one common share.
• Use of Proceeds: General working capital, mineral exploration, and advancement of the Choquelimpie gold-silver-copper project (specifically the 2026 drill program and stockpile PEA).
• Restrictions: All securities (including conversion and warrant shares) are subject to a restricted period of four months and one day from closing.
• Amended Terms: The offering was amended from gross proceeds of up to $10-million (Canadian) with a 30% overallotment option to gross proceeds of up to $10-million (U.S.) (approx. $13,794,400 CAD).

Notable Quotes

• Marc Levy, CEO: "This significant financing positions the company to advance its 2026 drill program, progress the Choquelimpie near-term production strategy and complete the proposed stockpile PEA [preliminary economic assessment]. Our long-term European and offshore strategic investors have demonstrated ongoing support and have expressed interest in providing additional capital as the project advances."