News Summary
The most recent news release on December 18, 2025, confirms the closing of a non-brokered charity/premium flow-through private placement for gross proceeds of $4,600,000. The company issued 20,000,000 units at a price of $0.23 per unit. Each unit consists of one flow-through common share and one-half of one non-flow-through purchase warrant, exercisable at $0.40 for 36 months. Additionally, the company announced it has completed the final option payment to earn a 100% interest in the Arlington property.
Material Impact
This news is materially positive for two primary reasons:
– Capital Injection: The $4,600,000 raise provides the necessary runway to fund the anticipated 2026 exploration programs at Silver Queen and Arlington without immediate liquidity concerns. Although the $0.23 issuance price is a significant discount to the mid-December trading price of $0.34, the use of “Charity/Premium” flow-through typically allows companies to raise larger amounts with less share dilution than standard placements.
– Asset Consolidation: Achieving 100% ownership of the Arlington property removes the “earn-in” risk and simplifies the corporate structure. While a 2% NSR remains, the company’s right to buy back 1% for $1,000,000 provides a clear path to reducing future royalty burdens.
– Resource Continuity: This financing follows a string of successful drill results (SQ25-160, SQ25-164) that extended the No. 3 Vein at Silver Queen. The funding ensures these results can be integrated into the upcoming Mineral Resource Estimate (MRE) update.
Catalysts
– Q1 2026 Mineral Resource Estimate: This is the most significant catalyst. Investors should look for a substantial increase in the AgEq (Silver Equivalent) ounces at Silver Queen, specifically from the No. 3 North and No. 3 vein extensions.
– Arlington Assay Results: Any pending assays from the summer/fall surface work and drilling on the newly 100%-owned Arlington property.
– Warrant Exercises: With the stock trading at $0.34, many historical warrants (priced at $0.13, $0.15, and $0.18) are deep “in the money.” Look for news of warrant exercises which could provide additional non-dilutive cash but also create selling pressure as holders flip shares.
Materiality Conclusion
The news is Material – Positive. It transitions the company from an “optionee” to a full owner of its secondary asset and secures the treasury ahead of a major resource milestone. The fact that the financing was non-brokered suggests strong internal or close-network support for the current exploration thesis.
