Prospect Ridge Announces First Tranche Closing of Flow-Through Unit Private Placement

Executive Summary

• Prospect Ridge Resources Corp. closed the first tranche of its non‑brokered flow‑through private placement, issuing 10,783,334 units for gross proceeds of $1,294,000.08.
• The company paid $85,400 in cash and issued 711,667 finder warrants (exercise price $0.18) as part of the tranche.
• Proceeds will primarily fund a 2,000‑meter drill program at the Camelot project and other eligible Canadian exploration expenses qualifying as flow‑through critical‑mineral mining expenditures.

Key Details

• Units Issued: 10,783,334 flow‑through units (each consisting of one common share and one warrant).
• Gross Proceeds: $1,294,000.08.
• Cash Paid to Finders: $85,400.
• Finder Warrants Issued: 711,667 warrants exercisable at $0.18 per share.
• Statutory Hold Period: All securities subject to hold until 28 Feb 2026.
• Insider Participation: Insiders purchased 41,667 units for $5,000 (≈0.39% of tranche units; ≈0.04% of outstanding common shares).
• Related‑Party Transaction: Exempted under MI 61‑101 sections 5.5(a)&(b) and 5.7(1)(a); fair market values below 25 % of market cap.
• Use of Proceeds:
• Finance eligible Canadian exploration expenses that qualify as flow‑through critical‑mineral mining expenditures.
• Primarily fund the 2,000 m drill program at Camelot (near Horsefly, B.C.).
• Closing Conditions: Subject to receipt of all required approvals, including exchange acceptance.
• U.S. Securities Law Disclaimer: Units not registered under U.S. securities laws; cannot be offered or sold in the United States absent exemption.
• Correction Notice: Total stock options granted corrected to 1,300,000 (previous release misstated).

Notable Quotes

(No direct quotes were provided in the release.)