Kingsmen Resources Announces Closing of Bought Deal Private Placement for Gross Proceeds of C$13 Million

Executive Summary

• Kingsmen Resources closed a bought‑deal private placement for gross proceeds of C$13,000,000.50, selling 5,777,778 units at C$2.25 each.
• Each unit includes one common share and half of a common‑share purchase warrant (full warrant exercisable at C$3.00).
• Net proceeds are earmarked for exploration of the Las Coloradas and Almoloya projects in Chihuahua, Mexico, plus working capital and general corporate purposes.

Key Details

• Units sold: 5,777,778 units @ C$2.25 per unit → Gross proceeds: C$13,000,000.50 (includes full exercise of underwriter’s option).
• Unit composition: 1 common share + ½ warrant (full warrant allows purchase of one common share at C$3.00).
• Warrant terms: Exercise price C$3.00; exercisable any time on or before 11 Feb 2029.
• Underwriter: Red Cloud Securities Inc., acting as sole underwriter and bookrunner.
• Underwriter compensation: Cash fees of C$910,000.04 plus 404,444 non‑transferable broker warrants (exercisable at the offering price, same expiry).
• Use of proceeds: Exploration and advancement of Las Coloradas & Almoloya projects; working capital; general corporate purposes.
• Regulatory exemption: Units issued under NI 45‑106 listed issuer financing exemption; immediately freely tradeable in Canada.
• Closing condition: Subject to final approval by the TSX Venture Exchange (TSXV).

Notable Quotes

“We are pleased to have successfully closed this financing, which provides us with the capital needed to advance our high‑grade silver‑gold projects in Mexico.” – Scott Emerson, President & CEO

Materiality Assessment: Material – Positive (significant capital raise supporting core exploration activities).