MetalQuest Mining Announces Second and Final Tranche Closing

Executive Summary

• MetalQuest Mining Inc. completed the second and final tranche of its non‑brokered private placement, issuing 1,963,760 NFT Units at $0.17 each for gross proceeds of $333,839.20 in this tranche and an aggregate of $1,966,780.20 across both tranches.
• The units consist of one common share plus half a share‑purchase warrant (full warrant exercisable at $0.40 per share for two years). No finder fees were paid.
• Proceeds are earmarked for general working capital and exploration activities on the Lac Otelnuk Iron Project.

Key Details

• Units Issued – Final Tranche: 1,963,760 NFT Units @ $0.17/unit → $333,839.20 gross proceeds.
• Total Offering Proceeds (both tranches): $1,966,780.20.
• Unit Composition: 1 common share + ½ share‑purchase warrant; each full warrant allows purchase of one additional common share at $0.40 for two years from closing.
• Hold Period: Minimum four‑month and one‑day hold expiring May 10, 2026 per Canadian securities law.
• Use of Proceeds: General working capital and exploration of the Lac Otelnuk Iron Project.
• Insider Participation: Existing insider/control person purchased 87,875 NFT Units (related‑party transaction under MI 61‑101). No material change report filed prior to closing because insider participation details were unknown at that time.
• Early Warning Disclosure – Ownership Impact:
• Pre‑closing, Chairman/CEO Harry Barr controlled ~47.41% of post‑conversion common shares.
• Post‑closing (after purchasing 599,313 Units), his indirect control is ~38.46% of post‑offering outstanding common shares.
• Regulatory Notes: Offering subject to TSX Venture Exchange approval; securities not registered in the United States and may not be offered there.

Notable Quotes

“We are pleased to announce the successful completion of the Company’s Offering raising an aggregate of $1,966,780.20 in all tranches. We received demand in excess of the amount raised… we elected not to increase the financing—doing so would have introduced unnecessary dilution at a pivotal stage in the Company’s growth trajectory.” – Harry Barr, Chairman and CEO

Materiality Assessment: Material – Positive (significant capital raise supporting ongoing exploration and development activities).