Trailbreaker Resources Ltd. has completed a non-brokered charity flow-through private placement, raising gross proceeds of $3.5 million. The financing involved two types of units: 2,500,000 CMETC flow-through units at $0.56 per unit for $1.4 million, and 4,200,000 flow-through units at $0.50 per unit for $2.1 million.
Each CMETC FT Unit consists of one CMETC FT common share and one-half of a common share purchase warrant, with each full warrant exercisable at $0.50 for 24 months for one non-flow-through common share. Similarly, each FT Unit contains one FT common share and one-half of a common share purchase warrant, with identical warrant terms. All shares issued qualify as "flow-through shares" under subsection 66(15) of Canada's Income Tax Act.
The company will use proceeds equal to the gross amount received to incur eligible Canadian exploration expenses. For FT Units, these qualify as "flow-through mining expenditures," while CMETC FT Units qualify as "flow-through critical mineral mining expenditures." For eligible British Columbia purchasers, both types qualify as "BC flow-through mining expenditures" under British Columbia's Income Tax Act provisions.
These Qualifying Expenditures will be incurred on or before December 31, 2027, and renounced to initial purchasers effective December 31, 2026. The funds are designated for exploration activities on Trailbreaker's properties in British Columbia, with proceeds advancing the company's various exploration projects.
The financing carries significant implications for the mining exploration sector. Flow-through shares represent a crucial mechanism for Canadian mineral exploration companies to attract investment by allowing investors to deduct exploration expenses against their taxable income. This structure particularly benefits junior mining companies like Trailbreaker that require substantial capital for high-risk exploration activities.
For more information about the company's projects, please visit TrailbreakerResources.com. Additional updates can be found through the company's social media presence at Twitter.com/TrailbreakerLtd.
The critical mineral focus of the CMETC FT Units portion reflects growing government and industry emphasis on securing supply chains for minerals essential to clean energy technologies and national security. British Columbia's mining sector stands to benefit from this investment, potentially leading to new discoveries and economic development in the region.
All issued units are subject to a four-month plus one day hold period in Canada from closing. The company paid cash finders' fees totaling $108,150 and issued 324,000 non-transferable broker warrants exercisable at $0.50 for two years, in accordance with Exchange policies. The offering remains subject to final Exchange approval.
