Metalsource increases financing to $10.53-million

Executive Summary

• Metalsource Mining Inc. increased its non‑brokered private placement by $3 million, raising the total offering to up to 14.05 million units at C$0.75 per unit for gross proceeds of up to C$10,537,500.
• Each unit consists of one common share and one half of a transferable warrant; each whole warrant allows purchase of one additional common share at C$1.00 for three years.
• Eric Sprott (via 2176423 Ontario Ltd.) will purchase 1,333,333 units for C$1 million, constituting a related‑party transaction that will be disclosed in a material change report.

Key Details

• Offering Size: Increased from up to 10.05 M units to up to 14.05 M units.
• Price per Unit: C$0.75.
• Gross Proceeds Target: Up to C$10,537,500 (including the additional $3 M).
• Unit Composition: 1 common share + ½ transferable common share purchase warrant.
• Warrant Terms: Whole warrant = right to buy 1 additional common share at C$1.00 per share for three years from issuance.
• Eric Sprott Participation: Acquires 1,333,333 units for total consideration of C$1,000,000.
• Related‑Party Transaction: Sprott holds >10 % of common shares; transaction qualifies for MI 61‑101 exemptions (does not exceed 25 % of fair market value). A material change report will be filed.
• Warrant Exercise Limitation: Sprott may not exercise warrants if resulting ownership reaches ≥19.99 % voting rights, including combined holdings with affiliates. Same limitation applies to his existing 1.7 M warrants (exercise price C$0.40, expiring Dec 31 2027).
• Regulatory Conditions: All securities subject to statutory hold periods; offering pending required approvals from the Canadian Securities Exchange and other regulators.

Notable Quotes

(No executive quotes were provided in the release.)