Apogee Minerals Enters into Option Agreement to Acquire a 100% Interest in the Knife Lake Copper Project in Saskatchewan from Trident Resources

Apogee Minerals Ltd. (APMI) has entered into an exclusive option agreement with Trident Resources Corp. to acquire a 100% interest in the Knife Lake Project, a VMS-style copper-cobalt-gold-silver-zinc deposit located in northeastern Saskatchewan. The property encompasses 54 mineral claims totaling approximately 35,255 hectares and hosts a near-surface, stratabound deposit. The mineralized zone averages 15 meters in thickness, dips 30–45° to the east, and extends over a strike length of approximately 4 kilometers.

A historical NI 43-101 resource estimate from June 2019 outlines the deposit's potential. The Indicated resource comprises 3.8 million tonnes at 1.02% CuEq, containing 0.83% Cu, 3.7 g/t Ag, 0.097 g/t Au, 82 ppm Co, and 1,741 ppm Zn. The Inferred resource consists of 7.9 million tonnes at 0.67% CuEq, containing 0.53% Cu, 2.4 g/t Ag, 0.084 g/t Au, 53.1 ppm Co, and 1,455 ppm Zn. These figures are based on a cut-off grade of 0.4% CuEq.

Previous operator Rockridge Resources, now Trident, conducted approximately 2,900 meters of drilling between 2021 and 2022. This work included hole KF22030, which intersected 15.9 meters of 1.93% Cu, 0.26 g/t Au, 7.50 g/t Ag, 0.17% Zn, and 0.02% Co starting at 13.8 meters depth. A VTEM survey was also completed in 2021.

To exercise the option, Apogee must complete specific financial and exploration obligations over two years. This includes paying $400,000 in cash, with tranches of $100,000 on closing, $150,000 at the first anniversary, and $150,000 at the second anniversary. Additionally, Apogee must issue 7.4 million common shares on closing, plus additional shares with a deemed value of $700,000 ($350,000 at each anniversary). These shares are priced at the greater of $0.09 or the 10-day VWAP, subject to a cap if Trident would exceed 10% ownership. Apogee must also incur $1.0 million in exploration expenditures, with $500,000 required by the first anniversary and $500,000 by the second.

The property is subject to underlying NSR royalties of 2.5% to Summit Royalties Ltd. and 1.5% to a private individual, totaling 4.0% NSR. Trading of Apogee shares is expected to be halted pending TSXV review under Policy 5.3 as a “Fundamental Acquisition.”

Apogee Minerals Ltd. (APMI) has acquired a defined copper-rich resource at the Knife Lake project, a move that significantly alters the company’s asset base. Prior to this transaction, Apogee’s portfolio consisted of early-stage Shasko Bay (gold/uranium) and May Lake (VMS/gold) projects, neither of which had a resource estimate. The company had previously terminated the Pine Channel gold option in December 2025, writing it off and leaving the firm with a weak balance sheet and limited assets.

The Knife Lake option provides a historical resource with significant tonnage, supported by recent drilling that suggests the deposit is viable and could be expanded. For a company with a market capitalization of approximately $9 million, the acquisition of an asset with indicated resources of 3.8 million tonnes at greater than 1% copper equivalent is a substantial addition.

The deal structure defers cash and share payments over two years, which reduces immediate dilution. However, the agreement commits Apogee to approximately $1.4 million in cash plus $1 million in exploration costs. The company raised $2.74 million in May 2026, providing sufficient pro-forma cash to meet near-term obligations, though liquidity management remains critical.

A notable aspect of the deal is the high aggregate 4.0% net smelter return (NSR), which impacts project economics and reduces the net value to Apogee. There is currently no mention of a buy-back right on these royalties.

The transaction is structured as an option rather than an outright purchase. If Apogee fails to meet specific milestones, it will lose the project, carrying a moderate risk of dilution from future raises required to fund these obligations. The TSXV has halted trading to review the news as a Fundamental Acquisition, indicating the exchange views the event as material.

Apogee Minerals Ltd. (APMI) is a junior exploration company focused on Saskatchewan. Until this announcement, its portfolio consisted of two grassroots properties: Shasko Bay, a gold and uranium project featuring historical gold intercepts of up to 6.8 g/t Au over 2.1 m, a recent airborne EM survey, and a permit valid through March 2026; and May Lake, a copper-zinc-gold-silver-nickel property with limited historical work, including a rusty andesite outcrop returning 2,090 ppm Cu.

With the Knife Lake option, the most advanced asset becomes the Knife Lake copper project. If exercised, it will be the flagship asset, given its resource base and historical work. The option marks the company’s first entry into a project with a NI 43-101 resource. Management and the board are experienced in junior mining finance and corporate development but lack deep operational mining experience.