Element 29 closes $35.46-million private placement

• Event: Element 29 Resources Inc. closed a non-brokered private placement on April 21, 2026.
• Amount: Gross proceeds of $35.47 million CAD.
• Terms: Issued 32,245,269 common shares at $1.10 per share.
• Strategic Investor: Alpayana SAC (led by Chair Alejandro Gubbins) acquired a 9.9% interest in the company. Randy Smallwood also participated.
• Use of Proceeds: Primarily to fund exploration activities at Peru projects, specifically the 2026 drilling program at the Elida porphyry Cu-Mo-Ag deposit, and for general working capital.
• Fees: Finder's fees of approximately $630,000 CAD were paid.
• Hold Period: Shares are subject to a statutory four-month-and-one-day hold period expiring August 22, 2026.
• Context: This closes the financing announced on April 9, 2026 (NewsId: 335211), which targeted up to $35.5 million at $1.10 per share.

• Execution of Prior Plan: The news confirms the closing of a financing deal previously announced on April 9, 2026. The terms ($1.10/share) and size (~$35M) match the initial announcement exactly. Therefore, this is largely expected market information rather than new catalyst material.
• Strategic Endorsement: The entry of Alpayana SAC as a 9.9% strategic investor adds credibility to the project valuation and management team (Richard Osmond), signaling confidence from experienced mining capital. However, since this participation was disclosed in the April 9 announcement, it does not constitute new material information on closing day.
• Dilution Impact: The issuance of ~32.2 million shares represents a significant dilution to existing shareholders. Based on the March 2026 presentation (155.5M issued), this increases the share count by approximately 20.7%.
• Price Discount: The financing price of $1.10 CAD is at a discount to the recent market trading price of ~$1.33 CAD (April 21 close). While standard for private placements, it creates immediate overhang pressure on the stock price relative to the financing level.
• Capital Security: The primary benefit is securing capital for the 2026 drilling program at Elida without immediate need for further dilution in the short term. This reduces near-term liquidity risk.

• Company: Element 29 Resources Inc. is an exploration-stage mining company focused on copper discoveries in Peru.
• Flagship Project: Elida Porphyry Cu-Mo-Ag Deposit (Central/Southern Peru).
  • Status: Inferred Mineral Resource Estimate exists (321.7 Mt @ 0.32% Cu, 2022 NI 43-101 report).
  • Recent Progress: Ongoing drilling program (7,000m planned for 2026) has returned significant intercepts extending mineralization beyond the current pit shell (e.g., Hole ELID041: 903.7m @ 0.38% CuEq).
  • Infrastructure: Located near Pan-American Highway, power lines, and ports; low elevation (~1,600m).
• Other Assets: Paka Project (Cu-Zn), Flor de Cobre (Atravesado prospect), Pahuay Project. All in exploration stage.