Valhalla Metals closes first tranche of $13.25 million private placement

Valhalla Metals Inc. (TSXV: VMXX) (OTCQB: VMXXF) completed the first tranche of its private placement, issuing 20,385,368 subscription receipts for gross proceeds of approximately $13.25 million at $0.65 per receipt.

The company received a $1.75 million order from Teck Resources Limited as part of the offering. A final tranche is expected to close by late May, according to the company's statement.

The private placement supports Valhalla's acquisition of the Smucker Project, a copper-gold-silver-zinc property from Teck American Incorporated, a Teck subsidiary. The transaction is expected to complete in late May or early June 2026.

Proceeds will fund exploration at Valhalla's Sun Property, including drilling programs, and mapping and survey work at the Smucker Project following the acquisition's completion. The funds will also cover general administrative costs.

The company agreed to pay finder's fees totaling $274,950.86, equal to 6% of gross proceeds arranged by certain finders. These fees become payable when subscription receipts convert to shares upon meeting escrow release conditions.

Company insiders participated in the offering, subscribing for 206,272 receipts worth $134,076.80 in gross proceeds. The participation constitutes a related party transaction under TSX Venture Exchange policies.

The gross proceeds remain in escrow pending completion of the Smucker Project acquisition. If conditions are not met within 90 days of closing, or if the transaction fails to proceed, the subscription receipts will be cancelled and funds returned to holders.

The offering requires final approval from the TSX Venture Exchange. All securities issued carry a four-month and one-day hold period from the closing date.

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