Prospect Ridge closes final tranche of financing

Executive Summary

• Prospect Ridge Resources Corp. has closed the third and final tranche of its non-brokered flow-through unit private placement, raising $50,000 from the issuance of 416,667 units.
• The total aggregate gross proceeds from all three tranches amount to $1,632,800.16, derived from the issuance of 13,606,668 flow-through units.
• Proceeds will be used for eligible Canadian exploration expenses, with approximately 50% allocated to a 2,000-meter drill program at the Camelot project and the remainder for drilling at the Excalibur and Castle projects.

Key Details

• Tranche 3 Specifics:
  • Issued 416,667 flow-through units.
  • Gross proceeds: $50,000.
  • Per-unit price: 12 cents.
  • No finders' fees were paid.
  • Securities subject to a statutory hold period expiring on April 4, 2026.
• Aggregate Financing Details:
  • Total gross proceeds: $1,632,800.16.
  • Total units issued: 13,606,668 flow-through (FT) units.
  • Unit Composition: Each FT unit comprises one flow-through common share and one-half of one common share purchase warrant.
  • Warrant Terms: Each warrant entitles the holder to purchase one common share at $0.18 for a period of two years after closing.
  • Warrant Acceleration: Warrants accelerate if the company's common shares trade or close on the Canadian Securities Exchange at $0.35 or more for ten consecutive trading days.
• Insider Participation:
  • Insiders purchased 963,333 FT units.
  • This represents approximately 1% of then issued and outstanding shares, or 1.47% if warrants were immediately exercised.
  • Classified as a related party transaction under Multilateral Instrument 61-101.
  • Company relied on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a), (b), (c) and 5.7(1)(a) and (b) of MI 61-101.
• Use of Proceeds:
  • Funds designated for eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).
  • ~50% allocated to a 2,000-meter drill program at the Camelot project (near Horsefly, B.C.).
  • Remaining funds allocated to drill programs at the Excalibur and Castle projects.

Notable Quotes

• "Prospect Ridge is very grateful to the investors who have supported us during this financing. Your trust and confidence in Prospect Ridge and its exploration projects is truly appreciated. We look forward to efficiently allocating these funds for the discovery of B.C.'s next significant copper-gold porphyry deposit to create value for all of our shareholders." — Len Brownlie, President and CEO