Avrupa Minerals Announces $500,000 Private Placement

Avrupa Minerals has announced a non-brokered private placement to raise gross proceeds of up to $500,000. The financing will consist of up to 10,000,000 units at a price of $0.05 per unit. Each unit comprises one common share and one common share purchase warrant. Each warrant allows the holder to purchase one additional common share at an exercise price of $0.075 for a period of 36 months.

The proceeds will be used to fund drilling and exploration programs in Finland, support ongoing operations in Portugal and Kosovo, and for general corporate purposes. The financing is subject to the approval of the TSX Venture Exchange.

This financing, while necessary for the company's survival, is assessed as materially negative from an equity analyst's perspective.

The announcement comes on the heels of the Q3 2025 financial statements (filed Nov 27, 2025), which painted a grim picture of the company's financial health. As of September 30, 2025, Avrupa had only CAD $100,275 in cash and a working capital deficit of CAD $44,797 (Current Assets: $267,466 vs. Current Liabilities: $312,263). With accounts payable and accrued liabilities at $194,643 and amounts due to related parties at $117,620, the company was on the verge of insolvency. This financing is not opportunistic but a rescue operation to "keep the lights on."

The terms of the financing are highly dilutive to existing shareholders. The issuance of 10 million new shares represents a ~15.5% dilution on the pre-financing issued and outstanding share count of 64.7 million shares. Furthermore, the 10 million warrants with a strike price of $0.075 create a significant future overhang. Combined with the 10 million existing warrants at $0.10, the company will have 20 million warrants outstanding, which will likely cap any significant share price appreciation in the near to medium term.

The gross proceeds of $500,000, after an 8% cash finder's fee ($40,000), will leave approximately $460,000. Given the high level of current liabilities, a significant portion of these funds will likely be used to pay down existing debt rather than fund meaningful exploration. This amount is insufficient to significantly advance any of its key projects without a partner.

This financing follows the major setback announced on February 28, 2025, when partner Sandfire MATSA withdrew from the flagship Sesmarias project in Portugal, stating it did not meet their "economic and operational interests." Despite some positive drill intercepts, the departure of a major funding partner is a significant red flag regarding the project's viability. Avrupa has yet to find a replacement partner for Sesmarias, or any of its Finnish projects.

In conclusion, the financing confirms the company's weak financial position, provides only a short-term lifeline, is highly dilutive, and does nothing to address the fundamental issue: the lack of a funding partner for its flagship project.

Avrupa Minerals is a junior exploration company employing the prospect generator model. It acquires and explores mineral properties in Europe with the goal of attracting joint venture partners to fund further exploration and development. The company currently has projects in Portugal, Finland, and Kosovo.

The company's flagship project has been the Alvalade Project, which contains the Sesmarias copper-zinc VMS discovery in the Iberian Pyrite Belt of Portugal. After several years of partner-funded exploration, the major partner, Sandfire MATSA, withdrew in February 2025. Avrupa now holds 100% of the project and is actively searching for a new partner. The project has no royalties mentioned, aside from potential government royalties.

Other key projects include: - Slivova Gold Project (Kosovo): Partnered with Western Tethyan Resources, which is earning up to an 85% interest. Avrupa currently holds a 49% interest in the JV. This project appears to be advancing towards feasibility. - Finland VMS Portfolio: A large package of copper-zinc and gold exploration permits, primarily in the Vihanti-Pyhäsalmi district, held through a partnership with Akkerman Exploration (AFOy). The company is actively seeking a JV partner for this portfolio.