Red Metal Resources Closes First Tranche of Financing

Executive Summary

• Red Metal Resources closed the first tranche of its previously announced private placement, issuing 9,125,000 units at $0.06 per unit for gross proceeds of $547,500.
• Each unit consists of one common share and one warrant; warrants are exercisable at tiered prices ($0.09 for 0‑12 mo, $0.12 for 12‑24 mo, $0.15 for 24‑36 mo).
• Proceeds will be used for general working capital and to advance exploration on the Carrizal copper project in Chile.

Key Details

• Units Issued: 9,125,000 units @ $0.06 each → $547,500 gross proceeds.
• Unit Composition: 1 common share + 1 warrant per unit.
• Warrant Exercise Prices:
• $0.09 for the first 12 months after issuance
• $0.12 for months 13‑24
• $0.15 for months 25‑36
• Finder’s Fees & Warrants: Paid $1,260 cash finder’s fees; issued 21,000 finder's warrants (each purchasable at $0.06 per share for two years).
• Use of Proceeds: General working capital and exploration activities on the Carrizal copper project in Chile.
• Related Party Participation: Two insiders contributed $300,000 total; transactions relied on MI 61‑101 exemptions (each below 25 % market cap threshold).
• Early Warning Disclosure – CEO/Director Caitlin Jeffs: Acquired 2,500,000 units in this tranche, increasing her ownership to ~8.97 % undiluted (13.96 % partially diluted) after the closing.
• Statutory Hold Period: Securities from the first tranche subject to a four‑month hold from issuance date.

Notable Quotes

“We are very pleased with the strong support shown in this first tranche… This funding strengthens our position as we advance our exploration plans for 2026.” – Caitlin Jeffs, President & CEO