Sego Closes Tranche 1 of $925,600 Non-Brokered Placement

Rhea-AI Summary

Sego Resources (OTC: SGOZF) closed Tranche 1 of a non-brokered placement, issuing 7,076,665 shares for $424,600 on March 16, 2026. The full offering targets 15,426,665 units for $925,600 at $0.06 per unit; $501,000 remains held back pending a personal information form and TSX‑V approval.

Each unit includes one share and one three‑year warrant at $0.10 with an acceleration clause if the share price exceeds $0.18 for ten consecutive business days. Hold period expires July 17, 2026. Funds intended for working capital and Miner Mountain exploration.

Positive

• Tranche 1 closed: $424,600 received
• Offering size targeted $925,600 at $0.06 per unit
• Warrants exercised: 4,650,000 exercised for $232,500

Negative

• Remaining $501,000 of offering delayed pending documentation
• Total issuance of 15,426,665 units increases share count
• Insider participation: 500,000 units subscribed by related party

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Vancouver, British Columbia--(Newsfile Corp. - March 16, 2026) - Sego Resources Inc. (TSXV: SGZ), ("Sego" or "the Company"), has closed Tranche 1 of its non-brokered private placement announced in News Releases February 5, 2026 and February 10, 2026, issuing 7,076,665 shares for a total of $424,600. The closing of the placement is subject to receipt of approval of the TSX-V.

Private Placement

The offering consisted of 15,426,665 units at $0.06 per unit for gross proceeds of $925,600. Due to a delay in the receipt of due diligence on a Personal Information Form the final $501,000 of the offering will be held back. The information revolves around a check performed by an outside agency and is no reflection on the subscriber. The receipt has been expected for some time now and, upon receipt and approval by the TSX-V, a final tranche will be closed. All funds are now with the Company.

Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share at $0.10 for three years from the closing of the private placement. The warrants will contain an acceleration clause that will be in place 4 months and one day after the units are issued. If at any time after the date that is four months and one day after the closing date the closing trading price of the Common Shares on the TSX Venture Exchange is greater than Canadian $0.18 per Common Share for a period of ten (10) consecutive Business Days, then the Company may give notice thereof and, in such case, the Expiry

Time shall be 5:00 p.m. (Vancouver time) on the 30th day after the date on which such notice is deemed to have been given by the Company to the Holder.

There will be no Finder's Fees paid on the placement.

MI 61-101 Disclosure

An insider of the Company, insider by right of holding >10% of the issued and outstanding shares of the company, participated in the Offering for a total of 500,000 Units by Strashin Developments Limited. The participation by such insiders is considered a "related-party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101).

All of the securities sold pursuant to the offering will be subject to a four-month-and-one-day hold period from the date of closing. The hold period will expire on July 17, 2026

The Company fully expects to spend the funds for general working capital and exploration of the Miner Mountain Project; there may be circumstances, for sound business reasons, where a re-allocation of funds may be necessary.

None of the securities issued in the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act").

Most Warrants that expired March 15, 2026 have been exercised from a total of 5,000,000 warrants, 4,650,000 have been exercised for a total of $232,500.

Drill hole planning is proceeding and a team is preparing to go to the project to locate drill holes.

There is no material change about the issuer that has not been generally disclosed.

For further information please contact: 

J. Paul Stevenson, CEO, Director

(604) 682-2933

ceo@segoresources.com

About the Project

Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry and gold exploration project located near Princeton, British Columbia. The property is 2,056 hectares in size and is 15 km north of the Copper Mountain Mine operated by Hudbay Minerals Inc. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band on whose Traditional Territory the Miner Mountain Project is situated. Sego has received an Award of Excellence for its reclamation work on the Miner Mountain Project.

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 release. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/288603

FAQ

How much did Sego Resources (SGOZF) raise in Tranche 1 of the March 16, 2026 placement?

Tranche 1 raised $424,600 through issuance of 7,076,665 shares. According to the company, the tranche is part of a larger $925,600 offering priced at $0.06 per unit, with a remaining $501,000 held back pending documentation and TSX‑V approval.

What are the terms of the warrants issued in Sego Resources (SGOZF) private placement?

Each unit includes one warrant exercisable at $0.10 for three years from closing. According to the company, warrants include an acceleration clause triggered if the TSX‑V price exceeds $0.18 for ten consecutive business days after four months and one day.

Why is $501,000 of Sego Resources (SGOZF) offering being held back and what happens next?

The $501,000 is held pending receipt of a Personal Information Form from a subscriber. According to the company, the delay stems from outside due diligence paperwork; funds will close as a final tranche upon receipt and TSX‑V approval.

How will the funds from Sego Resources (SGOZF) private placement be used?

The company intends to use proceeds for general working capital and Miner Mountain Project exploration. According to the company, reallocation may occur for sound business reasons, but primary planned use is operating costs and exploration activities.

Does the Sego Resources (SGOZF) placement involve any related‑party participation?

Yes; an insider subscribed for 500,000 units through Strashin Developments Limited. According to the company, the transaction relied on MI 61‑101 exemptions because the related‑party amounts did not exceed 25% of market capitalization.