Silver North Resources closes $11.57-million financing

Executive Summary

• Silver North Resources Ltd. has closed its previously announced brokered private placement, raising aggregate gross proceeds of C$11,576,985.
• The offering included the sale of 4,982,461 standard units and 17,114,286 flow-through (FT) units to charitable purchasers, with proceeds designated for exploration on the Haldane and Veronica projects and general corporate purposes.
• The transaction was facilitated by Red Cloud Securities Inc., which received cash fees and warrants as compensation, and the closing is subject to final approval by the TSX Venture Exchange.

Key Details

• Gross Proceeds: C$11,576,985 (includes exercise in full of the agent's option).
• Standard Units Sold: 4,982,461 units at a price of C$0.40 per unit.
• Flow-Through (FT) Units Sold: 17,114,286 charity FT units at a price of C$0.56 per unit.
• Unit Composition:
  • Standard Units: One common share + one-half of one common share purchase warrant.
  • Charity FT Units: One common share (to be issued as a flow-through share under Subsection 66(15) of the Income Tax Act (Canada)) + one-half of one warrant.
• Warrant Terms:
  • Each whole warrant entitles the holder to purchase one common share at C$0.56.
  • Exercise Period: From April 10, 2026, to February 10, 2029.
• Agent Compensation (Red Cloud Securities Inc.):
  • Cash Fees: C$810,388.92.
  • Warrants: 1,546,772 non-transferable common share purchase warrants.
  • Broker Warrant Terms: Exercisable to acquire one common share at the unit price (C$0.40) on or before February 10, 2029.
• Use of Proceeds:
  • General Proceeds: Exploration and related programs on the Haldane and Veronica properties in Yukon, working capital, and general corporate purposes.
  • Charity FT Proceeds: To incur eligible Canadian exploration expenses qualifying as flow-through mining expenditures related to the Haldane and GDR projects on or before December 31, 2027.
  • Renunciation: Qualifying expenditures will be renounced in favor of charity FT unit subscribers effective December 31, 2026.
  • Indemnification: Company indemnifies subscribers for additional taxes payable if the Canada Revenue Agency reduces qualifying expenditures.
• Regulatory Exemptions & Hold Periods:
  • LIFE Securities: 15,696,747 securities issued to Canadian purchasers under the Listed Issuer Financing Exemption (NI 45-106); immediately freely tradeable.
  • Charity FT Securities: 6,400,000 units issued under exemptions other than LIFE; subject to a hold period in Canada ending June 11, 2026.
• Status: Closing remains subject to final approval of the TSX Venture Exchange.