Xali Gold Closes First Tranche of Private Placement for $1.5 Million

Core Viewpoint - Xali Gold Corp. has successfully closed the first tranche of a non-brokered private placement, raising gross proceeds of C$1.5 million, which will facilitate the acquisition of the Pico Machay Gold Property and support exploration and working capital needs [1][2][3]. Group 1: Private Placement Details - The first tranche of the private placement raised C$1.5 million, with a second tranche of up to C$0.5 million expected to close in early January 2026 [1][2]. - A total of 15,000,000 units were issued at a price of $0.10 per unit, each consisting of one common share and one-half of a common share purchase warrant [3]. - Each warrant is exercisable for one additional share at a price of C$0.20 for 18 months, with an accelerated expiry provision if the share price exceeds C$0.30 for 10 consecutive trading days [3]. Group 2: Use of Proceeds - The net proceeds from the private placement will cover a US$500,000 payment to Pan American Silver Corp. for the acquisition of the Pico Machay Gold Property [2]. - Additional proceeds will be allocated to the exploration of Pico Machay and for general corporate purposes [2]. Group 3: Acquisition of Pico Machay - The acquisition of Pico Machay involves purchasing Minera Calipuy S.A.C., which wholly owns the property, from Pan American and its subsidiary [7]. - The acquisition is expected to close shortly and is subject to final approval from the TSX Venture Exchange [7]. Group 4: Related Party Transactions - Two directors of the company participated in the private placement, which is classified as a related party transaction [5]. - The issuance of units to the directors is exempt from certain valuation and minority shareholder approval requirements under Canadian regulations [5]. Group 5: Company Overview - Xali Gold is focused on gold and silver exploration in the Americas, with a particular emphasis on the Pico Machay project, which is in the advanced exploration stage and has a near-term production goal [8][9]. - The company also holds two royalty agreements related to gold and silver production from the El Oro project in Mexico [9].