Fathom Nickel Announces the Closing of the Second and Final Tranche of Upsized C$4 Million Private Placement

Executive Summary

• Fathom Nickel Inc. closed the second and final tranche of its upsized private placement, raising a total of C$3,999,999 across both tranches.
• The financing issued 24,970,947 non‑flow‑through (NFT) units at C$0.031 per unit and, combined with the first tranche, resulted in 52,083,334 charity flow‑through (FT) units at C$0.048 per unit and 48,387,076 NFT units at C$0.031 per unit.
• Proceeds will fully fund a planned up to 4,000 m exploration drill program at Gochager Lake and support general corporate purposes, with FT proceeds earmarked for eligible Canadian flow‑through mining expenditures.

Key Details

• Units Issued – Second Tranche: 24,970,947 NFT units @ C$0.031 each → C$774,099 gross proceeds.
• Combined Offering Totals:
• Charity FT Units: 52,083,334 @ C$0.048 → C$2,500,000 gross.
• NFT Units: 48,387,076 @ C$0.031 → C$1,499,999 gross.
• Total Gross Proceeds: C$3,999,999.
• Unit Structure:
• Each NFT unit = 1 common share + 1 transferable warrant (exercisable at C$0.05 for 36 months).
• Each Charity FT unit = 1 flow‑through common share + 1 transferable warrant (same terms).
• Resale Restriction: Units subject to a four‑month‑plus‑one‑day resale lock‑up from distribution date.
• Use of Proceeds – Charity FT Units: To incur eligible Canadian exploration expenses qualifying as flow‑through critical mineral mining expenditures for the Gochager Lake Project (renounced to subscribers by 31 Dec 2026).
• Use of Proceeds – NFT Units: Exploration and development of mineral projects, working capital, and general corporate purposes.
• Finder Compensation: Cash commission C$18,986 + 612,440 Finder warrants for the second tranche; total commissions across both tranches C$62,296 plus 3,557,880 Finder warrants (each warrant exercisable at C$0.05 for 24 months).
• Institutional Participation: Institutional investors contributed ~52 % of gross proceeds, including follow‑on investments from Crescat Capital LLC, Plethora Precious Metals Fund, and a new European institutional group.
• Planned Exploration Activity: Funding sufficient to commence up to 4,000 m of drilling at Gochager Lake beginning the first week of March 2026.

Notable Quotes

“With the closing of the upsized financing we are now fully funded to execute on the planned exploration drill program at Gochager Lake for up to 4,000 meters.” – Doug Porter, President & CFO
“We were also very pleased with the level of institutional investment that participated in this upsized equity financing… Institutional investors represented approximately 52 % of the gross proceeds raised.” – Doug Porter

Materiality: Material – Positive (significant capital raise enabling near‑term exploration program).