Borealis Announces Closing of C$23 Million Bought Deal Offering, Including Full Exercise of the Underwriters' Option

On January 15, 2026, Borealis Mining announced the closing of a C$23 million bought deal offering. The company issued 15,341,000 common shares at a price of C$1.50 per share. This includes the full exercise of the underwriters' over-allotment option. The financing was led by Stifel Canada, Haywood Securities, and Red Cloud Securities. Unlike many junior offerings, these shares were issued under the "Listed Issuer Financing Exemption," meaning they have no statutory hold period for Canadian investors. Proceeds are earmarked for advancing the Borealis and Sandman gold projects in Nevada and general working capital.

The impact of this news is Material - Positive for the company's liquidity but neutral-to-soft for the short-term share price performance. - Funding the Restart: The C$23M injection, combined with the US$8.18M cash reported as of October 31, 2025, provides the necessary capital for the planned restart of open-pit mining and blasting at the Borealis Mine in early 2026. - Institutional Validation: The full exercise of the over-allotment option indicates strong demand from institutional buyers at the C$1.50 level. - Dilution and Pricing: The financing was priced at C$1.50, which was a significant discount to the November 2025 highs of $2.04. This has created a "ceiling" on the stock as participants in the $1.50 raise may look to lock in profits, especially since the shares have no hold period. - Project De-risking: Having a fully funded mandate allows the company to move from low-margin stockpile processing to potentially higher-margin fresh ore mining.

Borealis Mining Company Limited is a gold producer focused on Nevada, USA. Its flagship is the Borealis Mine, an epithermal gold-silver project. - Infrastructure: The project features a fully built and permitted ADR (Adsorption, Desorption, and Recovery) plant capable of producing gold dore. - Strategy: The company's initial strategy involved processing 327,000 tonnes of mineralized stockpiles to generate early cash flow. It is now transitioning to restarting the open-pit mine. - Secondary Asset: The Sandman project (acquired from Gold Bull Resources) provides a significant resource base (~490k oz Au) with a positive PEA (US$1,337 AISC).