Copper Lake Announces C$1.0 Million Non-Brokered Secured Debenture Financing

Copper Lake Resources Ltd. announced a non-brokered private placement of units for up to C$1.0 million in gross proceeds. Each unit consists of one secured, non-convertible debenture with a $1,000 principal and bonus warrants exercisable at $0.19 per share. The debentures carry a 15% annual interest rate and mature in 12 months, secured by a general security interest over substantially all company assets. The warrants are non-transferable, have a 12-month term, and are classified as deemed bonus warrants under TSXV Policy 5.1.

Net proceeds will fund exploration at the Marshall Lake project, strengthen working capital, satisfy outstanding obligations, and cover general corporate purposes. Closing is expected the week of July 20, 2026, subject to TSXV approval, and may close in tranches.

Copper Lake Resources Ltd. (CPL) secured financing to address immediate liquidity needs, as the company held virtually zero cash on hand, with only $1,810 reported as of April 30, 2026, and faced a working capital deficit of approximately $1.97 million. The capital raise was anticipated given prior Management’s Discussion and Analysis disclosures highlighting liquidity constraints and the necessity to fund summer 2026 exploration activities.

The terms of the financing carry significant costs, including a 15% interest rate that increases cash burn, and at-the-money warrants with a $0.19 exercise price that introduce immediate dilution risk if exercised. By providing secured debt against all assets, the deal increases financial leverage and limits future borrowing capacity, thereby raising refinancing risk at maturity. The transaction extends the company's operational runway by approximately 12 months but does not de-risk the exploration thesis or alter its pre-revenue status.

Copper Lake Resources Ltd. is a pre-revenue junior explorer operating in Ontario, Canada, currently in the advanced exploration stage with no revenue generated. The company’s flagship asset is the Marshall Lake Property, a 220 square kilometer VMS copper-zinc-silver-gold deposit located in the Wabigoon Belt, over which it holds an 82.97% interest. The property features a historic Billiton deposit resource of 2.2 million tonnes at 4.20% Zn, 1.34% Cu, and 2.05 oz/t Ag, which is not compliant with NI 43-101 standards. Recent exploration efforts have focused on identifying gold geochemical anomalies and conducting high-grade Cu-Zn-Ag drilling at Teck Hill-Gazooma.

The company also holds the Norton Lake Property in the Uchi Belt, which contains a NI 43-101 compliant resource of 1.79 million tonnes at 0.72% Ni, 0.69% Cu, 339 ppm Co, 0.52% Pd, and 0.17% Pt. Management is led by CEO Terry MacDonald, with Donald Hoy serving as VP Exploration and Qualified Person.