Hercules Metals Incoming Management Team to Invest C$4.5 million in Non-Brokered Private Placement

Hercules Metals Corp. (BIG) announced that its incoming management team, known as the “Arizona Sonoran Team,” will personally subscribe for 7,258,066 common shares at C$0.62 in a non-brokered private placement. The seven-member group, which includes incoming CEO George Ogilvie, is raising gross proceeds of C$4.5 million. The issue price represents an approximately 5% premium to the closing price on the day before the July 30 announcement of the team’s appointments.

The placement is expected to close on September 1, 2026, concurrent with the team assuming their roles. All shares are subject to a four-month hold, and no finder’s fees are payable. Proceeds from the offering are earmarked for the drilling and expansion of the Leviathan porphyry copper system, exploration of new targets, geological and resource modelling, and working capital. The investment is intended to align the team’s interests with shareholders.

Hercules Metals Corp. (BIG) announced a C$4.5 million cash investment by its new management team, a move designed to demonstrate concrete conviction and address market concerns regarding personal capital at risk. While the July 30 announcement of management changes was well received, with the stock rising 30% on the day, it involved significant option grants of 18.65 million options, which may have led investors to question the depth of the team's financial commitment. This direct cash purchase removes that doubt.

The management purchased shares at a premium to the pre-announcement price of C$0.59 and at only a small discount to the current trading price of C$0.82, reinforcing the message that the team sees substantial upside from current levels. This transaction follows a C$31.5 million bought deal closed in May at C$0.59. Although this additional C$4.5 million is not transformational from a treasury standpoint, it effectively functions as a private placement at a higher price, indicating the team is not receiving a preferential deal despite the stock's recent run-up.

The incoming team previously sold Arizona Sonoran to Hudbay for C$2.0 billion. Their willingness to buy shares at these levels adds a layer of endorsement that pure stock options cannot provide. The news is materially positive as it cements the alignment of the new leadership without diluting existing shareholders at a low price, adding a sentiment catalyst that goes beyond routine operational updates.

Hercules Metals Corp. is a junior copper explorer focused on the Hercules Property in Washington County, western Idaho, USA. The company’s flagship Leviathan porphyry copper-silver-molybdenum discovery was made through blind drilling in 2023. Subsequent drilling has outlined a system with more than 1.3 km of strike length, up to 750 m in width, and more than 500 m of vertical extent.

Notable intercepts include 670 m of 0.45% Cu, 420 m of 0.60% Cu, and high-grade zones such as 81 m of 1.49% Cu. Mineralization begins as shallow as approximately 110 m vertical depth. The company holds more than 100,000 acres of contiguous claims and surface rights, including approximately 3,273 acres of private land with surface mining rights, providing year-round drill access on the Leviathan discovery without additional drill permits.

Infrastructure at the site features flat topography, road access, and proximity to 1,200 MW of clean electricity transmission lines. No mineral resource or reserve has been defined, and the project remains at the exploration stage.