HM Exploration closes $1.5 million flow-through private placement

HM Exploration Corp. (CSE: HM) completed a private placement offering that raised $1.5 million through the issuance of 2,955,666 flow-through units at $0.5075 per unit, according to a company statement.

Each unit consists of one flow-through common share and one warrant. The warrants allow holders to purchase additional common shares at $0.75 each within 24 months of the closing date. The flow-through shares qualify under subsection 66(15) of Canada's Income Tax Act.

The offering was conducted under the listed issuer financing exemption pursuant to National Instrument 45-106. Securities issued under this exemption are not subject to hold periods under Canadian securities laws.

HM Exploration plans to use the proceeds to advance exploration at its Lewis Pilley's Project in Newfoundland. The funds will cover Canadian exploration expenses and flow-through critical mineral mining expenditures for the critical mineral exploration tax credit. The company must incur these expenses by December 31, 2027, and renounce them to subscribers with an effective date no later than December 31, 2026.

The Vancouver-based company operates two exploration properties. The Devil's Den Project on Vancouver Island covers approximately 3,200 hectares across two claims. The Lewis Pilley's Project in Newfoundland spans 42.25 square kilometers and includes volcanogenic massive sulfide systems and the historic Pilley's Island Mine, which produced approximately 450,000 tonnes of ore in the late 1800s.

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