AuMEGA Metals Ltd (ASX: AAM), a company focused on exploring its district-scale land package along the Cape Ray-Valentine Shear Zone in Newfoundland, Canada, has announced the closing of the first tranche of its previously announced upsized brokered private placement financing. The company successfully raised aggregate gross proceeds of $30,094,623 AUD.
Under this first tranche, AuMEGA issued 98,376,589 Premium Flow-Through Units at a price of C$0.0544 per unit, resulting in gross proceeds of approximately C$5.35 million. Each unit comprises one common share and one common share purchase warrant. Each warrant allows the holder to acquire one non-flow-through common share at C$0.055 for 30 months following the closing date.
The company completed Tranche One within its available placement capacity under ASX Listing Rules 7.1 and 7.1A. The second tranche is subject to shareholder approval at a Special Shareholder Meeting scheduled for 10 April 2026 (Australia) / 9 April 2026 (North America). Tranche Two is expected to consist of further PFT Units, flow-through shares, and hard dollar units.
An amount equal to the gross proceeds from the sale of PFT Units in Tranche One will be used to incur Canadian exploration expenses that qualify as flow-through mining expenditures in Canada on or before 31 December 2027. Net proceeds from any hard dollar units under the broader Offering are intended to fund exploration advancement and general working capital. Clarus Securities Inc. and Canaccord Genuity Corp. acted as co-lead agents for the offering.
