McFarlane Lake Announces Proposed Strategic Investment in iMetal Resources, Inc.

McFarlane Lake Mining Ltd. has entered into a subscription agreement to invest C$1,420,085 in iMetal Resources Inc. (IMR), purchasing 14,200,852 units at $0.10 per unit. The transaction is part of iMetal’s previously announced non-brokered private placement of up to 30 million units, with an aggregate value of C$3 million.

Each unit consists of one common share and one transferable warrant exercisable at $0.175 for three years. The warrants feature an accelerated expiry if the TSXV volume-weighted average price exceeds $0.40 for 20 consecutive trading days.

Upon closing, McFarlane is expected to beneficially own approximately 19.9% of iMetal’s outstanding common shares. An Investor Rights Agreement grants McFarlane the right to nominate one director to iMetal’s board, participate in future equity issuances to maintain its pro rata interest, and provide technical oversight on the Gowganda property, subject to board approval. Closing is subject to final TSXV and CSE approvals.

iMetal Resources Inc. (IMR) secured a C$1.42 million investment from McFarlane, a move that addresses immediate liquidity concerns for the company, which had been operating with a going-concern warning, a working capital deficiency of $659,429, and only $39,662 in cash at the end of Q3-2026. The funding covers a significant portion of the C$3 million placement the company has been attempting to close since early June 2026, which was originally targeted at C$4 million.

The transaction provides immediate liquidity and extends the company's financial runway, while also signaling third-party validation from a neighboring operator. However, the deal remains subject to regulatory approvals, and iMetal must still raise the remaining approximately C$1.58 million of the placement. The pricing at $0.10 represents a discount to the prior close of $0.14, implying further dilution for existing holders.

While the news mitigates near-term survival risk, it does not eliminate it entirely. Drill results from February 2026 failed to lift the share price, highlighting the market’s focus on the company's capital structure. Although the strategic board seat grants McFarlane significant influence, the development does not transform iMetal’s fundamental exploration or financial position overnight.

iMetal Resources Inc. (IMR) is a Canadian junior explorer focused on gold and graphite. Its flagship asset is the 100%-owned, royalty-free Gowganda West project in the Shining Tree camp of the Abitibi greenstone gold belt in Ontario. The property covers approximately 8,007 hectares and is contiguous to McFarlane Lake Mining’s Juby deposits.

Discovery hole IMGW23-04 intersected 48.5 meters at 0.85 grams per tonne of gold. In 2025, drilling expanded the footprint with broad, low-grade gold intervals, including:

• 16.65 meters at 1.24 grams per tonne of gold within 62.25 meters at 0.61 grams per tonne of gold.

The company also holds the Ghost Mountain gold property, which straddles the Porcupine-Destor Fault, and the Carheil graphite project in Quebec.