Pasinex closes $1.61-million first tranche of placement

Executive Summary

• Pasinex Resources Ltd. has closed the first tranche of its non-brokered private placement, raising gross proceeds of $1,613,000.
• The financing is oversubscribed, with the company expecting to raise an additional ~$200,000, bringing total potential proceeds to nearly $2.0 million.
• Net proceeds will be used to advance the Sarikaya project (including underground development, drilling, and permitting) and for general working capital, while supporting continued production at the Pinargozu mine.

Key Details

• Gross Proceeds: $1,613,000 from the first tranche.
• Potential Total Proceeds: Approximately $2.0 million (including ~$200,000 in additional commitments expected by late April).
• Securities Issued: 16.27 million units at a price of $0.10 per unit.
• Unit Composition: Each unit consists of one common share and one-half warrant.
• Warrant Terms: Each whole warrant is exercisable at $0.15 per common share for a period of 24 months.
• Share Capital: Post-closing, the company has 254,489,081 common shares issued and outstanding.
• Finders' Fees: $8,050 in cash fees and 140,000 units issued.
• Insider Participation: Insiders subscribed for 970,000 units for gross proceeds of $97,000. This is a related party transaction under Multilateral Instrument 61-101, relying on exemptions from formal valuation and minority approval requirements.
• Hold Period: All securities are subject to a statutory hold period of four months plus one day from issuance.
• Use of Proceeds: Advancing the Sarikaya project (instalment payments to previous owner, underground development, drilling, mine equipment, permitting), general working capital, and advanced exploration within the Sarikaya licence area.
• Operational Context: Financing follows recent sales of high-grade zinc material from the Pinargozu mine in Turkey.

Notable Quotes

• "Thank you to our new and existing shareholders in Canada, Germany and Austria for their continuing strong support... Last year in July and this year in January, my family and I, together with other insiders, converted more than $5-million of debt into equity at a premium to market, underscoring alignment and confidence." — Dr. Larry Seeley, Executive Chairman
• "Building on our recent sales of high-grade zinc material from Pinargozu, we are continuing to move toward sustainable cash flow at the mine level. This progress demonstrates the strength of our high-grade zinc model and its ability to deliver near-term returns with relatively low capital intensity." — Dr. Larry Seeley
• "Participation in the current financing provides entry at a fixed price with warrant coverage, while proceeds are being deployed directly toward expanding production at Pinargozu and accelerating development at Sarikaya. The success of this oversubscribed financing strengthens our balance sheet and reflects growing investor confidence as we transition into a revenue-generating phase." — Dr. Larry Seeley