Signature Resources Announces Closing of Upsized Equity Financing

Rhea-AI Summary

Signature Resources (SGGTF) has successfully closed an upsized equity financing, raising gross proceeds of C$1,471,400 through the issuance of 5,400,000 flow-through shares and 24,028,000 non-flow-through units at C$0.05 each. Each NFT unit includes one common share and half a warrant, with whole warrants exercisable at C$0.08 for 12 months.

Company insiders participated significantly, acquiring 55% of the offering through 3,800,000 FT shares and 12,000,000 NFT shares. The proceeds will be allocated as follows:

• 20% for completing maiden NI 43-101 resource
• 27% for 2024 drilling program expenses
• 28% for equipment and exploration camp expenses
• 25% for general working capital

The financing will support the completion of the initial NI 43-101 resource report on the Lingman Lake project, which has been drilled to a depth of 200 meters and remains open laterally.

Positive

• Successful upsizing of financing from C$1,000,000 to C$1,471,400
• Strong insider participation at 55% of the offering
• Upcoming maiden NI 43-101 resource report completion
• Successful 2024 drill program completion

Negative

• Dilution of existing shareholders through new share issuance
• Short warrant exercise period of only 12 months

Toronto, Ontario--(Newsfile Corp. - March 28, 2025) - Signature Resources Ltd. (TSXV: SGU) (OTCQB: SGGTF) (FSE: 3S30) ("Signature" or the "Company) is pleased to announce that it has closed it's previously offering and is issuing 5,400,000 flow-through shares ("FT Shares") and 24,028,000 non-flow-through units ("NFT Units") each priced at $0.05 for gross proceeds of to C$1,471,400.

On February 24, 2025, the Company announced a non-brokered private placement for gross proceeds of C$1,000,000 (the "Offering") of FT Shares and non-flow-through shares ("NFT Shares") each priced at C$0.05. The Company announced March 11, 2025 it had amended the Offering with FT Shares still offered at $0.05 and we would offer non-flow-through units ("NFT Units") at $0.05. Each NFT unit is comprised of one share of common stock of the Company ("Common Share") and one half of one Common Share purchase warrant ("Warrant"). Each whole Warrant will be exercisable for one additional Common Share ("Warrant Share") at a price of $0.08 per Warrant Share for a period of 12 months following the date of issuance. On March 24, 2025, the Company announced the previously announced Offering had been upsized to C$1,400,000.

"We are very pleased to announce the closing of this financing that allows us to continue moving forward to completing our goal of publishing our initial NI 43-101 resource on the Lingman Lake project which we believe will be very beneficial to investors understanding the true potential of the deposit that has only been drilled to a depth of 200 meteres and is open laterally. We had a very successful drill program in 2024 that we believe will be even more evident when we can provide more details in our forthcoming resource report."

- J. Dan Denbow, CFA - President, CEO and Director

As previously announced it was expected that insiders of the Company would subscribe to at least half the offering. As part of the Offering insiders of the Company purchased or acquired direction and control over 55% of the Offering by acquiring 3,800,000 FT Shares and 12,000,000 NFT Shares, constituting a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").

The net proceeds from the Offering will be used for completing the maiden NI 43-101, final expenses for the 2024 drilling program, exploration camp maintenance and upgrades, and general working capital purposes. It is expected that twenty percent of the proceeds will be used for completing the resource model, twenty seven percent for the remaining drilling program expenses, twenty eight percent for equipment and exploration camp expenses and twenty five percent for general working capital purposes including accrued invoices to a non-arm's length party. None of the proceeds will be used for investor relations service providers.

The Offering is subject to the acceptance of the TSX Venture Exchange. All securities issued pursuant to the Offering will be subject to a statutory hold period of four months and one day from the date of issuance, in accordance with applicable securities laws. Finders fees totalling $2,540 will be paid as part of the offering.

About Signature

The Lingman Lake gold property (the "Property") consists of 1,300 staked claims, four freehold fully patented claims and 14 mineral rights patented claims totaling approximately 24,761 hectares. The Property includes what has historically been referred to as the Lingman Lake Gold Mine, an underground substructure consisting of a 126.5-metre shaft, and 3-levels at 46-metres, 84-metres and 122-metres depths. There has been over 28,000 metres of historical drilling done on the Property and four 500 pound bulk samples that averaged 19 grams per tonne of gold. In November of 2023, the Ontario government energized a new 115kV high tension transmission line within 40 km of the historic Lingman Lake Mine (https://www.wataypower.ca/).

To find out more about Signature, visit our website at www.signatureresources.ca, or contact:

Dan Denbow
Chief Executive Officer
210-912-4356
info@signatureresources.ca

or contact :
Renmark Financial Communications Inc.
John Boidman: jboidman@renmarkfinancial.com
Tel: (416) 644-2020 or (212) 812-7680
www.renmarkfinancial.com

Cautionary Notes

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release contains forward-looking statements which are not statements of historical fact. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions and risks associated with infectious diseases, including COVID-19. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to changes in general economic and financial market conditions, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246576

FAQ

How much did Signature Resources (SGGTF) raise in their latest equity financing?

Signature Resources raised C$1,471,400 through flow-through shares and non-flow-through units priced at C$0.05 each.

What is the warrant exercise price and term for SGGTF's non-flow-through units?

Each whole warrant is exercisable at C$0.08 per share for a 12-month period following issuance.

How much insider participation was there in SGGTF's equity financing?

Insiders participated in 55% of the offering, acquiring 3,800,000 FT shares and 12,000,000 NFT shares.

How will SGGTF allocate the proceeds from their latest financing?

The proceeds will be used: 20% for NI 43-101 resource, 27% for drilling program expenses, 28% for camp expenses, and 25% for working capital.

What is the current depth of drilling at SGGTF's Lingman Lake project?

The Lingman Lake project has been drilled to a depth of 200 meters and remains open laterally.