Loyalist Exploration Limited (CSE:PNGC) has terminated its previously announced non-brokered private placement and confirmed that no further tranches will be completed, according to a company announcement. The offering, originally announced on August 10, 2026, raised $1,000,000 through the sale of 25,000,000 common shares at $0.04 per share in its first tranche, which now stands as the final closing. The termination of the offering signals that Loyalist has secured the capital it needs to pursue its immediate objectives without additional dilution.
In a separate transaction, the company closed a shares for debt arrangement, settling $113,285 of outstanding indebtedness through the issuance of 2,832,125 common shares at $0.04 per share. This debt conversion reduces the company's liabilities and preserves cash for operational purposes. Notably, $45,000 of the settled debt was owed to Errol Farr, President, CEO and director, and Leonard Mackenzie, Vice President of Exploration, making the transaction a related party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority approval requirements because the fair market value of the consideration did not exceed 25% of Loyalist's market capitalization.
The proceeds from the first tranche are earmarked to complete ongoing NI 43-101 technical reports, including a resource estimate and preliminary economic assessment on the company's Tully project, as well as production permitting work, property payments, and general working capital. Errol Farr commented, "We are grateful for the support of our subscribers, which has enabled us to achieve our objective of funding the ongoing Tully PEA. With this capital in place, we continue to execute on our strategy of becoming the next gold producer in the Timmins camp by systematically advancing Tully toward a fully funded and permitted mining operation." The funding is critical as it allows Loyalist to advance Tully toward a production decision without the uncertainty of additional financing.
In connection with the first tranche, Loyalist paid finder's fees of $37,200 in cash to Haywood Securities Inc. and issued 930,000 non-transferable broker warrants, each exercisable at $0.075 per common share until August 31, 2028. All securities issued in the first tranche and the shares for debt transaction are subject to a four-month and one-day hold period. The company's focus on the Tully Gold Project, located in the prolific Timmins Gold Camp of northeastern Ontario, underscores its strategy to become a gold producer. The project benefits from a high-confidence Indicated and Inferred Mineral Resource Estimate, favorable infrastructure, and a modern geological model.
The termination of the private placement and the completion of the shares for debt transaction streamline Loyalist's capital structure and demonstrate management's commitment to advancing Tully. With the capital now in place, the company can proceed with its exploration and development activities, including work on its three other Timmins-based projects: DeSantis, Gold Rush, and Loveland. For more details, view the original release on www.newmediawire.com.
