Shine Minerals increases financing to $1.5-million

Executive Summary

• Shine Minerals Corp. upsized its non‑brokered private placement to $1.5 million, pricing at C$0.06 per pre‑consolidation share.
• The financing will fund a one‑for‑five share consolidation, transaction costs, reactivation of TSX‑V trading, and initial exploration on the Red Cloud Silver project in Arizona.
• Shine secured an option to purchase all 11.1 million shares of Red Cloud Silver (RCS) by issuing 6.5 million post‑consolidation common shares; it may later acquire 100 % of RCS for additional shares and $650,000 cash after spending $2 million on exploration.

Key Details

• Financing Upsize: Gross proceeds targeted at ≈ $1.5 M, up from the prior announcement (Dec 11, 2025).
• Share Price: C$0.06 per pre‑consolidation share.
• Share Consolidation: One‑for‑five consolidation to be completed before closing.
• Use of Proceeds: Transaction costs, reactivation expenses, initial exploration on the La Paz County project, and general working capital.
• Option Structure – Initial Grant: Right to purchase all 11.1 M RCS shares by issuing 6.5 M post‑consolidation common shares to RCS shareholders on a pro‑rata basis (no immediate ownership interest).
• Future Exercise Conditions: After spending $2 M on exploration within one year, Shine may elect to acquire 100 % of RCS by issuing an additional 14.2 M post‑consolidation shares and paying $650,000 cash pro‑rata to RCS shareholders.
• RCS Existing Option: RCS holds an option to buy a 100 % interest in the project from Gulf + Western Industries for US$1.4 M (cash & share payments) by Oct 31, 2028; Gulf retains a 2 % NSR royalty.
• Share Issuance Caps: Under the RCS‑Gulf agreement, Shine will not issue more than 3 M shares to Gulf, nor allow Gulf to hold >9.9 % of Shine’s outstanding shares.
• Closing Conditions: Completion subject to TSX‑V acceptance, satisfaction of definitive agreement conditions, and completion of consolidation & financing.
• Reactivation: Application filed with TSX‑V for reactivation; trading will resume only after required filings and approvals are obtained.

Notable Quotes

(No direct quotes were provided in the release.)