Prospect Ridge arranges $3-million private placement

Executive Summary

• Prospect Ridge Resources Corp. announced a non-brokered private placement of up to $3 million through the issuance of up to 25 million critical mineral flow-through units.
• The offering is priced at 12 cents per unit, with proceeds designated for eligible Canadian exploration expenses and specifically to fund a 2,000-metre drill program at the Camelot project in British Columbia.
• Each unit includes one flow-through common share and one-half of a warrant exercisable at 18 cents, with accelerated expiry conditions if the stock trades above 35 cents for 10 consecutive days.

Key Details

• Transaction Structure: Non-brokered private placement of up to 25 million critical mineral flow-through units.
• Price: 12 cents per unit.
• Gross Proceeds: Up to $3 million.
• Unit Composition: Each unit consists of one flow-through common share (FT share) and one-half of a warrant.
• Warrant Terms:
  • One whole warrant is exercisable to purchase one non-flow-through common share.
  • Exercise Price: 18 cents.
  • Term: Two years after closing.
  • Accelerated Expiry: Warrants expire early if the company's common shares trade or close on the Canadian Securities Exchange at 35 cents or more for 10 consecutive trading days.
• Use of Proceeds:
  • Incur eligible Canadian exploration expenses on mineral projects in British Columbia.
  • Qualify as flow-through critical mineral mining expenditures under the Income Tax Act (Canada).
  • Bulk of proceeds to finance a recently announced 2,000-metre drill program on the Camelot project near Horsefly, B.C.
• Closing Conditions: Subject to necessary approvals, including exchange acceptance.
• Hold Period: All securities subject to a statutory and/or exchange hold period of four months plus one day from closing.
• Finder Fees: Company may pay finder fees in compliance with applicable securities laws and exchange policies, subject to regulatory approvals.