Lodestar Metals Upsizes Private Placement to $1.5M

Rhea-AI Summary

Lodestar Metals (OTCQB: SVTNF) has increased its previously announced private placement to C$1,500,000 at C$0.075 per Unit, for up to 20,000,000 Units. Each Unit comprises one common share and one-half warrant; each whole warrant allows purchase of one share at $0.12 for two years.

The Company can accelerate the warrant expiry if the volume-weighted average price reaches $0.15 for a consecutive 10 trading day period, with acceleration effective 30 days after notice. Finder fees of up to 6% cash plus 6% warrants may be paid. Proceeds are for exploration and drilling on the Goldrun Project in Nevada and for working capital. Securities will be restricted from resale for four months and one day. The Offering is subject to TSX Venture Exchange acceptance.

Positive

• Upsized private placement to C$1.5M
• Attractive drill funding for Goldrun Project
• Units priced at C$0.075 to secure capital

Negative

• Potential issuance of up to 20,000,000 Units
• Warrants could produce 10,000,000 additional shares if exercised
• Total possible new shares on full exercise: 30,000,000
• Warrant acceleration at $0.15 may pressure share liquidity
• Offering subject to TSXV acceptance

Vancouver, British Columbia--(Newsfile Corp. - October 22, 2025) - Lodestar Metals Corp. (TSXV: LSTR) (OTCQB: SVTNF) ("Lodestar" or the "Company") announces that further to its news releases dated September 29, 2025, and October 15, 2025, the Company has further increased the size of its previously announced private placement (the "Offering") from gross proceeds of C$1,000,000 to C$1,500,000. The Offering is priced at C$0.075 per Unit, for the issuance of up to 20,000,000 Units.

Each Unit will continue to consist of one (1) common share of the Company (each a "Share") and one-half of one (1/2) share purchase warrant (each whole share purchase warrant, a "Unit Warrant"), with each Unit Warrant entitling the holder to purchase one additional Share (a "Unit Warrant Share") at a price of $0.12 per Unit Warrant Share for a period of two years from the date of issue (the "Expiry Date"). The Company has the right to accelerate the Expiry Date if, at any time, the volume weighted average price of the Post-Consolidation Common Shares on the principal exchange or market on which the Post-Consolidation Common Shares trade is equal to or greater than $0.15 for 10 consecutive trading days ("10-Day Period"). In the event of acceleration, the Expiry Date will be accelerated to a date that is 30 days after the Company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 10-Day Period.

The Company may also pay finders a fee of 6% cash and 6% share purchase warrants. The securities issued under the Offering will be subject to restrictions on resale for a period of four months and a day from the date of issue.

The proceeds of the Offering will be used for exploration and drilling on the Company's Goldrun Project located in Nevada as well as working capital purposes. The Offering is subject to acceptance of the TSX Venture Exchange.

ABOUT LODESTAR METALS
Lodestar Metals Corp. is a Canadian mineral exploration company advancing high-potential projects in North America. The Company's flagship asset includes the newly optioned Gold Run Property in Nevada, situated along the prolific Getchell and Battle Mountain-Eureka Gold Trends and the Peny Property in the Snow Lake District of Manitoba. Lodestar's strategy focuses on high-impact exploration, strategic acquisitions, and responsible development. For further information, please visit our website at www.lodestarmetals.ca.

CONTACT
Lodestar Metals Corp.
Lowell Kamin, President, CEO & Chairman of the Board
(416) 272-1241
lowell@lodestarmetals.ca

NEITHER 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/271534

FAQ

What did Lodestar Metals (SVTNF) announce on October 22, 2025 about its private placement?

Lodestar increased the private placement size to C$1.5M at C$0.075 per Unit, for up to 20,000,000 Units.

How are Lodestar Units structured and what are the warrant terms in the SVTNF offering?

Each Unit is one share plus one-half warrant; whole warrants allow purchase at $0.12 per share for two years, with an acceleration clause at $0.15 VWAP over 10 trading days.

How will Lodestar use the proceeds from the C$1.5M private placement (SVTNF)?

Proceeds are designated for exploration and drilling on the Goldrun Project in Nevada and for general working capital.

Could the SVTNF offering dilute current shareholders and by how many shares?

Yes; the offering can issue up to 20,000,000 Units and warrants could add 10,000,000 shares if fully exercised, totalling up to 30,000,000 new shares.

Are there any resale restrictions or finder fees in the Lodestar SVTNF placement?

Securities will be restricted for four months and one day; the company may pay finders up to 6% cash and 6% warrants.

Is the Lodestar (SVTNF) private placement finalized?

No; the Offering is subject to acceptance by the TSX Venture Exchange.