Silver North Resources (TSX-V:SNAG) has entered into an agreement with Red Cloud Securities to act as sole agent and bookrunner for a private placement for C$5 million ($5.36 million).
The placement terms are for the sale of up to 5 million units of the company at a price of C$0.40 per unit and up to 5.3 million flow-through units of the company to be sold to charitable purchases (Charity FT Units) together with the units at a price of C$0.56 per Charity FT Unit.
Each unit will consist of one common share and one-half of one common share purchase warrant. Each Charity FT Unit will consist of one common share to be issued as a flow-through share (within the meaning of Canada’s Income Tax Act) and one-half of one warrant.
Red Cloud has been granted an option, exercisable in full or in part up to 48 hours prior to closing the marketed offering, to sell up to an additional C$1 million in any combination of units and Charity FT Units.
Proceeds will be put towards ‘Canadian exploration expenses’ that qualify as flow-through expenditures as defined in Canada’s Income Tax Act. This is for the company’s Haldane and GDR projects and must be incurred on or before 31 December 2027.
The offered securities will be offered for sale to purchasers residing in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan, pursuant to the listed issuer financing exemption of the Coordinated Blanket Order 45-935 (the Listed Issuer Financing Exemption).
The offering is expected to close on or around 5 February 2026, as agreed by Silver North and Red Cloud.
SIlver North is primarily focused on the wholly owned Haldane Silver Project, the Tim Silver Project, and the GDR, with plans to acquire additional silver properties in favourable jurisdictions.
Write to Amy Rotman at Mining.com.au
Images: Silver North
