Prismo Metals arranges $1.25-million financing

Executive Summary

• Prismo Metals Inc. announced a non-brokered private placement of 12.5 million units at $0.10 per unit, raising minimum gross proceeds of $1.25 million.
• The company received high-grade overlimit silver assay results from its Ripsey Gold Project, with four samples ranging from 132 to 224 g/t Ag, confirming high-grade mineralization along the Ripsey vein.
• Net proceeds are intended primarily for drilling at the Silver King project, with a first phase of minimum 1,000 meters planned for August 2025, following the submission of a plan of operations to the Forest Service.

Key Details

• Financing Structure:
  • Units Issued: 12.5 million units.
  • Issue Price: $0.10 per unit.
  • Gross Proceeds: Minimum $1.25 million.
  • Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Each warrant entitles the holder to purchase one share at an exercise price of $0.175.
  • Warrant Expiry: 36 months from date of issue.
  • Acceleration Clause: If shares close at or above $0.25 for 10 consecutive trading days on the Canadian Securities Exchange, the company may accelerate warrant expiry by issuing a news release, with warrants expiring 30 calendar days after such release.
  • Use of Proceeds: Primarily for drilling at the Silver King project and general corporate purposes.
  • Hold Period: Four-month hold period from closing date under Canadian securities laws.
  • Existing Shareholder Exemption: Available to shareholders holding shares as of Oct 18, 2025, subject to a $15,000 maximum investment per 12-month period (unless independent advice is obtained). Pro-rata adjustment applies if subscriptions exceed the maximum amount.
• Ripsey Gold Project Assay Results:
  • Sample Type: Overlimit silver assays.
  • Results: Four samples ranging from 132 to 224 g/t Ag.
  • Significance: Confirms high-grade nature of mineralization along the Ripsey vein, exposed at surface and underground workings over ~600 metres along strike.
• Silver King Project Drilling Plans:
  • Status: Plan of operations submitted to the Forest Service in Arizona in August 2025.
  • First Phase: Minimum 1,000 metres of drilling.
  • Objective: Test the upper half of the steeply dipping pipe-like Silver King mineralized body and potentially mineralization adjacent to the historic dense stockwork.
  • Future Plans: Follow-up drilling may expand on initial results and include separate targets such as polymetallic veins and porphyry-style mineralization.
• Project Context (Silver King):
  • Historical Production: Discovered in 1875; yielded nearly six million ounces of silver at grades up to 61 oz/t.
  • Location: 3 km from the Resolution Copper project (Rio Tinto/BHP joint venture), one of the world's largest unmined copper deposits.
  • Land Position: Fully surrounded by Resolution Copper's claim block.
  • Historic High-Grade Samples: Late 1990s small-scale production samples returned up to 644 oz/t Ag (18,250 g/t) and 0.53 oz/t Au (15 g/t).

Notable Quotes

• Dr. Craig Gibson, Chief Exploration Officer: "This first phase is designed to test the upper half of the steeply dipping pipe-like Silver King mineralized body, as well as potentially mineralization adjacent to the dense stockwork that was the focus of historic mining. Follow-up drilling will expand on the initial program based on the results and may include separate targets outside of the historic mining area, such as the polymetallic vein mentioned above. The discovery of the two mineralized veins and porphyry style mineralization has resulted in Prismo evaluating a larger drill program to test those targets."
• Dr. Craig Gibson, Chief Exploration Officer: "We have also received the overlimit assays for silver for four samples from the Ripsey mine, which range from 132 to 224 g/t Ag. These results confirm the high-grade nature of the mineralization along the Ripsey vein, exposed at the surface and in underground workings over about 600 metres along strike."