Quartz Mountain plans Phase 5 drilling and $1.37M financing

Quartz Mountain Resources Ltd. (TSXV: QZM, OTCQX: QZMRF) announced plans to begin Phase 5 core drilling at its 100%-owned Maestro gold-silver project near Houston, British Columbia, on October 20, 2026, according to a company statement.

The Phase 5 program is designed to expand the Prodigy discovery beyond its current mineralized footprint by testing geophysical targets north, south, and east of existing drill sites. The current Prodigy footprint measures approximately 100 to 200 metres wide, 600 metres long, and up to 500 metres deep. Four prior phases of drilling totaling 12,951 metres across 21 drill holes have been completed at the site. The company holds permits covering 37 additional drill sites.

Apex Diamond Drilling Ltd. of Smithers, BC, has been contracted for the drilling, with HEG and Associates Exploration Services Inc. providing geological services.

To fund the program, Quartz announced a non-brokered private placement totaling $1.37 million in gross proceeds, consisting of 1,550,000 units at $0.40 per unit for $620,000 and 1,875,000 flow-through units at $0.40 per unit for $750,000. Each unit includes one common share and one warrant exercisable at $0.50 per share for 24 months. Proceeds from flow-through units will fund drilling, while proceeds from standard units will support general working capital. The company reported working capital of $2.3 million prior to this financing.

Three insiders are participating in the offering. The Dickinson Control Group, which currently holds approximately 41.3% of issued common shares, will subscribe for $400,000 worth of flow-through units. Sutton Group, holding approximately 26.7% of outstanding shares, will subscribe for 1,500,000 units. The insider participation qualifies as a related party transaction under Multilateral Instrument 61-101 but is exempt from valuation and minority shareholder approval requirements due to the transaction's size.

All securities issued will carry a statutory hold period of four months and one day from closing. The offering remains subject to TSX Venture Exchange approval and is expected to close in September 2026.

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