AuMEGA Metals Closes First Tranche of Previously Announced Upsized Financing

Core Viewpoint - AuMEGA Metals Ltd. has successfully closed the first tranche of its brokered private placement financing, raising approximately C$5.35 million through the issuance of Premium Flow-Through Units [1][2]. Financing Details - The first tranche ("Tranche One") involved the issuance of 98,376,589 Premium Flow-Through Units at a price of C$0.0544 per unit, resulting in gross proceeds of about C$5.35 million [2]. - Each Premium Flow-Through Unit consists of one common share and one common share purchase warrant, with the warrant allowing the holder to acquire one non-flow-through common share at a price of C$0.055 for 30 months [2]. - Tranche One was completed within the company's available placement capacity under ASX Listing Rules 7.1 and 7.1A, with specific shares and warrants issued under these rules [3]. Future Tranche Plans - The second tranche ("Tranche Two") will require shareholder approval due to exceeding the company's available placement capacity, with a special meeting scheduled for April 10, 2026 [4]. - Tranche Two is expected to include up to 135,000,000 Premium Flow-Through Units, 22,127,660 Flow-Through Shares, and 408,973,412 hard dollar units, potentially raising up to approximately C$24.74 million in total [5]. Shareholder Impact - Following Tranche One, Condire Investors, LLC will hold approximately 11.1% of the company's outstanding shares on a non-diluted basis, with potential to increase to 19.9% after Tranche Two [6]. - The proceeds from Tranche One will be allocated to Canadian exploration expenses qualifying as "flow-through mining expenditures" by December 31, 2027 [7]. Agent and Fees - The offering is being conducted by Clarus Securities Inc. and Canaccord Genuity Corp. as co-lead agents, with a total cash commission and finder's fee of C$321,101, representing 6% of the gross proceeds from Tranche One [8]. Company Overview - AuMEGA Metals Ltd. is focused on exploring a significant land package along the Cape Ray-Valentine Shear Zone in Newfoundland, which hosts high-potential gold and copper targets [13][14]. - The company has a defined gold mineral resource of 6.2 million tonnes grading an average of 2.25 g/t gold, totaling 450,000 ounces of Indicated Resources [15].