Valhalla Metals announces $5 million private placement for copper project

Valhalla Metals Inc. (TSXV: VMXX) (OTCQB: VMXXF) announced a non-brokered private placement offering of 7,692,307 subscription receipts at $0.65 per receipt to raise $5 million in gross proceeds.

The offering connects to the company's previously announced acquisition of the Smucker Project, a copper-gold-silver-zinc property from Teck American Incorporated, a subsidiary of Teck Resources Limited. The transaction is expected to close in June 2026.

Teck and Marubeni Corporation indicated intentions to participate in the offering for approximately $1.75 million and $1.7 million respectively, subject to negotiation and execution of definitive documentation.

Net proceeds will fund exploration expenditures on the company's Sun Property, including drilling programs, mapping and survey work at the Smucker Project, administrative costs and working capital.

The gross proceeds will be held in escrow pending satisfaction of conditions including completion of the Smucker Project acquisition and receipt of required shareholder and regulatory approvals. Upon meeting these conditions, subscription receipts will automatically convert to common shares without additional consideration.

If conditions are not satisfied within 90 days of the offering's closing or if the transaction does not proceed, subscription receipts will be cancelled and escrowed funds returned to holders.

Valhalla reserves the right to increase the private placement size by 100% to $10 million in aggregate proceeds. The subscription receipts and underlying common shares will be subject to a four-month hold period under applicable securities laws.

The company operates the Sun copper-zinc-lead-gold-silver VMS project in Alaska's Ambler Mining District.

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