1911 Gold Announces Closing of US$15 Million Drawdown Under Credit Facility with Auramet International

Executive Summary

• 1911 Gold closed the initial US$15 million drawdown (“Tranche 1”) under a US$30 million secured credit facility with Auramet International.
• Proceeds are earmarked for critical True North Gold Project capital expenditures, including mining equipment, underground development, and a new crushing circuit.
• The transaction includes an arrangement fee (US$1.05 M) and drawdown fee (US$375 k) paid via issuance of common shares and 4.5 million share purchase warrants.

Key Details

• Credit Facility: US$30 million total; Tranche 1 amount US$15 million closed on March 9, 2026.
• Interest Rate: 12% per annum, payable monthly; no interest accrues on Tranche 1 for the first six months after closing.
• Amortization/Repayment: 12 equal monthly instalments of US$1.25 million beginning 13 months after closing and ending 24 months after closing (Maturity Date).
• Security: First‑ranking security interest on all personal property; continuing collateral mortgage over True North Gold Project and Rice Lake exploration properties.
• Remaining Tranche: Additional US$15 million available between 90 and 180 days post‑closing, subject to conditions precedent.
• Arrangement Fee: US$1,050,000 (3.5% of facility) satisfied by issuance of 1,369,600 common shares at C$1.05 per share.
• Drawdown Fee: US$375,000 (2.5% of Tranche 1) satisfied by issuance of 489,142 common shares at C$1.05 per share.
• Warrants Issued: 4,500,000 common share purchase warrants (Tranche 1 Warrants), each exercisable at C$1.07 per share (≈10% premium to VWAP). Expire on the Maturity Date, subject to acceleration.
• Statutory Hold Period: Shares and warrants subject to a four‑month hold period expiring July 10, 2026.
• Use of Proceeds: Funding for essential mining equipment purchase, underground development at True North mine, and installation of new crushing circuit at the mill.

Notable Quotes

“The closing of Tranche 1 provides us with the capital required to advance critical operational milestones at the True North Gold Project,” – Shaun Heinrichs, President & CEO.