Metalsource Mining increases private placement to $10.5 million

Metalsource Mining Inc. (CSE: MSM) (OTCQB: SFRIF) (FSE: E9Z) increased its non-brokered private placement financing by $3 million, bringing the total to $10.5 million, the company announced February 10.

The offering now includes up to 14.05 million units at $0.75 per unit, increased from the previously announced 10.05 million units. Each unit consists of one common share and one-half of one transferable warrant, with each full warrant allowing the purchase of one additional common share at $1.00 for three years.

Eric Sprott, through 2176423 Ontario Ltd., will acquire 1.33 million of the additional units for $1 million. Sprott currently holds more than 10% of the company's common shares. The remainder of the offering is fully subscribed, according to the company.

The transaction with Sprott constitutes a related party transaction under Multilateral Instrument 61-101. The company relies on exemptions from formal valuation and minority shareholder approval requirements because Sprott's participation will not exceed 25% of the company's fair market value.

Under Canadian Securities Exchange rules, Sprott's warrants are subject to exercise limitations preventing him from owning 19.99% or more of the company's voting rights. This limitation also applies to 1.7 million warrants issued to Sprott on December 31, 2025, with an exercise price of $0.40 and expiration date of December 31, 2027.

All securities from the offering will be subject to statutory hold periods under Canadian securities laws. The offering requires regulatory approvals, including from the Canadian Securities Exchange.

Metalsource Mining is a Vancouver-based mineral exploration company focused on advancing mineral assets through exploration and discovery activities.

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