Drummond, Toro Silver close $60.27M (U.S.) financing

Executive Summary

• Drummond Ventures Corp. and Toro Silver Corp. closed a non‑brokered private placement of 43,056,756 subscription receipts at $1.40 each, raising US$60.28 million in gross proceeds.
• The financing satisfies a condition required to complete the proposed merger of Drummond and Toro; upon completion Drummond will be renamed Mackay Gold & Silver Corp. and is expected to begin trading on TSX‑V (ticker “MACK”) by mid‑April 2026.
• Proceeds are earmarked for mineral exploration at Toro’s Comstock property in Nevada, related salaries/consulting fees, property holding costs, and general working capital; finder’s fees of $987,822 and warrants have also been issued.

Key Details

• Subscription receipts issued: 41,253,756 (Toro) + 1,803,000 (Drummond) = 43,056,756 total at US$1.40 per receipt.
• Gross proceeds: US$60,279,458.
• Escrow arrangement: Funds held by Odyssey Trust Company; release contingent on satisfaction of escrow conditions tied to the merger.
• Conversion mechanics:
• Each Toro subscription receipt converts to one Toro common share, which will be exchanged for one post‑consolidation Drummond share upon merger completion.
• Each Drummond subscription receipt converts directly into one resulting issuer (Mackay) share after the transaction closes.
• Merger status: Conditional approval from TSX‑V received (announced March 20, 2026); private placement closure fulfills a key condition.
• Post‑merger details:
• Drummond will be renamed Mackay Gold & Silver Corp.
• Anticipated trading on TSX‑V under ticker MACK around mid‑April 2026, subject to remaining conditions and exchange approval.
• Use of proceeds:
• Mineral exploration expenditures at the Comstock mining property (Nevada)
• Exploration‑related salaries & consulting fees
• Mineral property holding costs
• General working capital
• Finder’s compensation:
• Cash fees: $987,821.94 total
• Warrants: 350,094 non‑transferable finders’ warrants, each exercisable for one resulting issuer share at US$2 per share, valid for 24 months from issuance.
• Shares issued to finders: 197,070 resulting issuer shares.
• Holding periods:
• Drummond subscription receipts and resulting issuer shares are subject to a four‑month hold period expiring August 2, 2026.
• Toro‑derived resulting issuer shares have no such hold period.
• Conditions & approvals: Final exchange approval required; other standard merger conditions include shareholder approval, regulatory filings, name change, and consolidation steps.

Notable Quotes

(No direct quotes were provided in the release.)