Silver Spruce closes $739,250 1st tranche of financing

Executive Summary

• Silver Spruce Resources Inc. has closed the first tranche of its non-brokered private placement, raising gross proceeds of $739,250.
• The company announced an extension of the offering, anticipating the close of the second and final tranche on or before May 4, 2026.
• Proceeds are designated for mineral project exploration and general working capital, subject to regulatory approvals including TSX Venture Exchange final approval.

Key Details

• Transaction Structure: Non-brokered private placement.
• First Tranche Size: 3,696,250 units issued.
• Price: 20 cents per unit.
• Gross Proceeds: $739,250.
• Unit Composition: Each unit consists of one common share and one share purchase warrant.
• Warrant Terms: Each warrant allows the purchase of one share at an exercise price of 30 cents per warrant share for a period of four years from issuance.
• Finder Compensation: Cash commission of $39,560 paid to eligible finders, plus 197,800 finder warrants exercisable at 30 cents for 48 months from closing.
• Insider Participation: Insiders subscribed for an aggregate of 233,750 units, constituting a related party transaction under Multilateral Instrument 61-101.
• Regulatory Reliance: The company relies on exemptions from valuation and minority shareholder approval requirements of MI 61-101 (sections 5.5(a) and 5.7(1)(a)) as the fair market value of securities acquired by insiders will not exceed 25% of market capitalization.
• Use of Proceeds: Exploration of mineral projects and general working capital.
• Hold Period: Securities issued to investors and finders are subject to a statutory hold period of four months and one day from issuance.
• Future Tranche: The company anticipates closing the second and final tranche on or before May 4, 2026.