K9 Gold Corp. Announces Option Agreement with Sokoman Minerals on Stony Lake Property and Update on Private Placement

Rhea-AI Summary

K9 Gold (OTCQB: WDFCF) announced an option agreement dated October 2, 2025 with Sokoman Minerals on K9's 75% interest in the Stony Lake Gold Property in central Newfoundland. Under the agreement, Sokoman may acquire Stony Lake by issuing 1,500,000 common shares to K9 upon receiving required regulatory approvals.

Concurrently, K9 reduced a previously announced private placement from $2,500,000 to $1,250,000 to focus exploration capital on the recently acquired Trinity Silver Project in Nevada. Management says the smaller financing will cut shareholder dilution while providing sufficient capital to advance Trinity's historical resource work and targeted exploration and for general working capital.

Positive

• Sokoman to issue 1,500,000 shares to K9 upon approvals
• Private placement reduced by 50% from $2,500,000 to $1,250,000
• Proceeds redirected to advance Trinity Silver Project in Nevada

Negative

• Option and share issuance are subject to required regulatory approvals
• Reduced financing lowers available cash that could have funded Stony Lake activity

Vancouver, British Columbia--(Newsfile Corp. - October 8, 2025) - K9 Gold Corp. (TSXV: KNC) (OTCQB: WDFCF) (FSE: 5GP0) ("K9" or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") dated October 2, 2025, with Sokoman Minerals Corp. ("Sokoman") regarding the Company's 75% interest in the Stony Lake Gold Property, located in central Newfoundland. Under the terms of the Agreement, Sokoman has the option to acquire the Stony Lake Property by issuing to K9 a total of 1,500,000 common shares of Sokoman upon receipt of all necessary regulatory approvals.

Jeff Poloni, Chief Executive Officer of K9 Gold, commented:

"We are very pleased to partner with Sokoman Minerals on the Stony Lake Project. Sokoman has an excellent track record of exploration success in Newfoundland, and we believe this agreement provides K9 with significant upside exposure to future discovery while allowing us to concentrate our efforts on advancing the recently acquired Trinity Silver Project in Nevada."

In conjunction with this transaction, the Company also announces that it has reduced the size of its previously announced private placement from $2,500,000 to $1,250,000. The reduction reflects the Company's decision to redirect its exploration focus toward the Trinity Silver Project, and as a result, K9 no longer requires additional funds previously allocated for work on the Stony Lake Property.

This adjustment will result in less shareholder dilution while still providing K9 with sufficient capital to continue advancing the historical resource and conducting targeted exploration and development activities at the Trinity Silver Project.

Proceeds from the financing will now be primarily directed toward exploration and development at Trinity and for general working capital purposes.

About K9 Gold Corp.

K9 Gold Corp. is a mineral exploration company focused on the acquisition, exploration, and development of mineral properties in North America. The Company's primary asset is the Trinity Silver Project in Pershing County, Nevada, which covers approximately 14,523 acres of owned and leased land and hosts a historic open-pit, heap-leach silver operation.

Kosta Tsoutsis
Director
K9 Gold Corp.
email: kosta@k9goldcorp.com
telephone: 604 808-9134

Brian Morrison
Chief Financial Officer and Director
K9 Gold Corp.
email: brian@k9goldcorp.com
telephone: 604 312-6910

The Company is listed on the TSX Venture Exchange.

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.

Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding K9's intention to continue to identify potential transactions and make certain corporate changes and applications. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits K9 will obtain from them. These forward-looking statements reflect managements' current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including K9's inability to identify transactions having satisfactory terms or at all and the results of exploration or review of properties that K9 does acquire. These forward-looking statements are made as of the date of this news release and K9 assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/269583

FAQ

What did K9 Gold announce on October 8, 2025 about Stony Lake and Sokoman (WDFCF)?

K9 entered an option agreement dated October 2, 2025 with Sokoman for K9's 75% interest in Stony Lake; Sokoman may acquire it by issuing 1,500,000 common shares to K9 upon regulatory approvals.

How did K9 Gold change its private placement on October 8, 2025 (WDFCF)?

K9 reduced the previously announced private placement from $2,500,000 to $1,250,000, a 50% reduction.

Why did K9 Gold reduce the private placement size (WDFCF)?

K9 said it redirected exploration focus to the Trinity Silver Project in Nevada and no longer requires the funds earlier allocated for Stony Lake.

What will the proceeds from the reduced financing be used for (WDFCF)?

Proceeds will be primarily directed toward exploration and development at Trinity and for general working capital.

Does the Sokoman share issuance require approvals and what is the timing (WDFCF)?

The issuance of 1,500,000 Sokoman shares to K9 is conditional on receipt of all required regulatory approvals.