Sankamap Metals arranges $5-million private placement

Executive Summary

• Sankamap Metals Inc. announced a non-brokered private placement financing of up to $5.0 million, involving the issuance of up to 14,285,715 units at a price of $0.35 per unit.
• Each unit consists of one common share and one-half of a common share purchase warrant, with warrants exercisable at $0.55 per share for 24 months.
• Proceeds will be used to acquire a drilling rig for the Fauro property to enable simultaneous drilling of the Kuma and Fauro properties, as well as for general working capital.

Key Details

• Financing Structure: Non-brokered private placement of up to 14,285,715 units.
• Price: $0.35 per unit.
• Gross Proceeds: Up to $5,000,000.
• Unit Composition: Each unit comprises one common share and one-half of a common share purchase warrant.
• Warrant Terms (Investors): Each warrant entitles the holder to purchase one additional common share at an exercise price of $0.55 for a period of 24 months from issuance.
• Use of Proceeds: Acquisition of a drilling rig for installation at the Fauro property to allow simultaneous drilling of the Kuma and Fauro properties; remaining funds for general working capital.
• Finder’s Fees: Up to 6.0% of gross proceeds raised by finders, payable in cash and warrants.
• Finder’s Warrant Terms: Warrants to acquire common shares equal to up to 6.0% of the number of units sold by the finder, exercisable at $0.35 per share for 24 months.
• Regulatory Conditions: Subject to approval of the Canadian Securities Exchange (CSE).
• Hold Period: All securities issued are subject to a four-month and one-day hold period.
• Project Context (Oceania Project):
  • Located in the Solomon Islands along a prolific copper-gold trend near Newmont's Lihir mine.
  • Kuma Property: Believed to host an underexplored porphyry Cu-Au system; historical rock chip sampling returned >0.5 g/t Au, with standout samples of 11.7% Cu and 13.5 g/t Au.
  • Fauro Property (Meriguna Target): Historical trenching returned 8.0m at 27.95 g/t Au and 14.0m at 8.94 g/t Au; grab samples up to 173 g/t Au.
  • Kiovakase Target: Recent sampling returned copper values up to 4.09%.
  • Historical Drilling: Limited shallow drilling intersected 35.0m at 2.08 g/t Au.

Notable Quotes

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