Chesapeake increases bought deal offering to $15M

Executive Summary

• Chesapeake Gold Corp. upsized its previously announced bought‑deal public offering to $15 million, selling 3,571,500 units at $4.20 per unit.
• The company will also complete a non‑brokered private placement of up to 685,000 units at the same price, targeting gross proceeds of approximately $2.88 million.
• Proceeds are earmarked for advancing the proprietary oxidative leach technology and development of the Metates and Lucy projects, as well as general working capital.

Key Details

• Upsized Public Offering: 3,571,500 units @ $4.20 per unit → total gross proceeds ≈ $15,000,300.
• Unit Composition: Each unit = 1 common share + ½ common‑share purchase warrant.
• Warrant Terms: Warrants allow purchase of one common share at $5.65, exercisable any time up to 36 months after the closing date.
• Overallotment Option: Underwriters may purchase additional units equal to up to 15 % of the sold units within 30 days post‑closing for overallotments or market stabilization.
• Non‑Brokered Private Placement (NB): Up to 685,000 units @ $4.20 per unit → gross proceeds up to $2,877,000.
• NB Unit Composition: Same as public offering units (1 common share + ½ warrant).
• Hold Period for NB Units: Subject to a lock‑up until four months and one day after the NB closing date under Canadian securities law.
• Related‑Party Participation: Eric Sprott (through 2176423 Ontario Ltd.) will participate in the NB placement to maintain his pro‑rata ownership (~17.9 % non‑diluted, ~19.9 % partially diluted).
• Regulatory Exemptions: The NB offering qualifies for exemptions from formal valuation and minority shareholder approval under TSX Venture Exchange Policy 5.9 and MI 61‑101 because the transaction value is <25 % of market capitalization.
• Use of Proceeds: Advance oxidative leach technology, fund Metates project development, advance Lucy project, and provide general working capital.
• Closing Timeline: Expected closing on or about Jan. 27 2026, subject to regulatory approvals (TSX Venture Exchange) and execution of underwriting agreement.

Notable Quotes

(No direct quotes were provided in the release.)