Prospect Ridge closes second tranche of financing

Executive Summary

• Prospect Ridge Resources Corp. has closed the second tranche of its non-brokered flow-through unit private placement, raising gross proceeds of $288,800.04.
• The tranche consisted of 2,406,667 flow-through units priced at 12 cents each, with significant insider participation representing approximately 40% of the units issued.
• Proceeds are designated for eligible Canadian exploration expenses, specifically targeting a 2,000-metre drill program at the Camelot project in British Columbia.

Key Details

• Transaction Structure: Non-brokered flow-through unit private placement.
• Units Issued: 2,406,667 flow-through units.
• Price Per Unit: 12 cents.
• Gross Proceeds: $288,800.04.
• Finder’s Compensation:
  • Cash paid: $4,102.21.
  • Warrants issued: 34,183 finders' warrants.
  • Warrant Exercise Price: 18 cents.
• Insider Participation:
  • Insiders purchased 963,333 flow-through units for $115,599.96.
  • This represents approximately 40.03% of the total flow-through units issued in this tranche.
  • Post-closing, insider-held common shares represent ~0.99% of issued/outstanding shares; including warrant exercises, this rises to ~1.48%.
• Regulatory Context: Classified as a related party transaction under Multilateral Instrument 61-101. The company relies on exemptions from formal valuation and minority shareholder approval requirements as the fair market value of the interested party portion does not exceed 25% of market capitalization.
• Use of Proceeds: Financing eligible Canadian exploration expenses (flow-through critical mineral mining expenditures) for mineral projects in British Columbia.
• Specific Project Allocation: Bulk of proceeds to finance a 2,000-metre drill program at the Camelot project near Horsefly, B.C.
• Hold Period: All securities subject to a statutory hold period expiring on March 14, 2026.
• Closing Conditions: Subject to exchange acceptance and other necessary approvals.

Notable Quotes

• None provided in the text.