Fidelity Minerals Announces Private Placement Financing

Fidelity Minerals Corp. announced a non-brokered private placement of up to 2,500,000 units at C$0.20 per unit, with gross proceeds capped at C$500,000. Each unit comprises one common share and one-half transferable warrant. The warrants are exercisable into one additional common share at C$0.30 per share for a 24-month period. An acceleration clause triggers if the share price closes at or above $0.60 for 10 consecutive trading days, allowing the company to accelerate warrant expiry by 30 days.

Net proceeds will fund exploration and community relations at the Las Huaquillas project in Peru, plus general working capital. The financing is subject to TSX Venture Exchange approval and carries a statutory hold period of four months and one day. This follows a series of financings since May 2026, including a first tranche of 3.16M units ($632k) in June and a second tranche of 4.5M units ($900k) in July, bringing total raised in this round to ~$1.53M.

Fidelity Minerals Corp. (FMN) is issuing up to 2.5 million units at $0.20, a move that represents approximately a 23% discount to the company’s recent trading range of $0.22 to $0.29. The financing comes as the company’s liquidity is critically impaired; as of Q3 2026, cash on hand stood at just $3,905, accompanied by a working capital deficit of $913,425 and an explicit going concern warning.

This placement serves as a survival mechanism rather than a growth catalyst, extending the operational runway without addressing the fundamental lack of revenue or profitability. While the market likely anticipated continued capital raises given the going concern status, the execution at a discount and the recurring nature of these tranches are negative for existing equity holders. No new project milestones, resource updates, or strategic partnerships are introduced to offset the dilution.

Fidelity Minerals Corp. (FMN) is a pre-revenue exploration company focused on gold and copper projects in Peru and a greensand fertilizer project in Australia. Its flagship asset is the Las Huaquillas gold-copper property in northern Peru, located within the 900km Miocene Metallogenic Belt. The company holds a 50% interest in the project with a right to earn an additional 50%.

Las Huaquillas is in the advanced exploration or brownfield stage, featuring existing multi-level underground workings that include 1.2 km of development across three levels. Historical resources at the site total 446,000 oz of gold and 5.3 million oz of silver, though these figures are non-compliant with NI 43-101 standards due to insufficient drilling. The company’s goal is to validate and expand the historic resource to an initial target of 1 million oz of gold via a new NI 43-101 compliant study.

The management team includes CEO Ryan Batros, who has over 20 years of experience in financial markets and corporate advisory. Chairman John Byrne is the founder of Lions Bay Capital. Directors Dean Pekeski and Ian Graham are former geologists with Rio Tinto and Rio Tinto/Anglo American, respectively.