Trailbreaker Resources Secures $3.5 Million in Flow-Through Financing for Exploration Projects

Trailbreaker Resources Ltd. has closed its non-brokered charity flow-through private placement for gross proceeds of $3.5 million. The company issued 2,500,000 CMETC flow-through units at $0.56 per unit for $1.4 million and 4,200,000 flow-through units at $0.50 per unit for $2.1 million. Each unit consists of one flow-through common share and one-half of a common share purchase warrant, with full warrants exercisable at $0.50 for 24 months from the date of issue for one non-flow-through common share.

The financing matters because it provides Trailbreaker with significant capital to advance its exploration projects while utilizing Canada's flow-through share mechanism. This structure allows the company to renounce eligible Canadian exploration expenses to investors, who can then deduct these expenses from their taxable income. For the CMETC FT Units, these qualify as "flow-through critical mineral mining expenditures" under the Income Tax Act, highlighting the strategic focus on critical minerals that are essential for technologies like electric vehicles and renewable energy systems.

The proceeds will be used to incur eligible "Canadian exploration expenses" that qualify as flow-through mining expenditures, with specific portions meeting the criteria for "BC flow-through mining expenditures" under British Columbia's tax legislation. These Qualifying Expenditures will be incurred on or before December 31, 2027, and renounced to initial purchasers effective December 31, 2026. This timeline provides investors with near-term tax benefits while funding multi-year exploration activities on Trailbreaker's properties in British Columbia.

Implications of this financing extend beyond Trailbreaker's immediate operational needs. By structuring the offering with both standard flow-through units and CMETC flow-through units, the company taps into different investor appetites and tax incentive frameworks. The critical mineral designation for portion of the funds aligns with governmental priorities to secure supply chains for minerals like copper, nickel, and lithium. The company paid cash finders' fees totaling $108,150 and issued 324,000 non-transferable broker warrants exercisable at $0.50 for two years, in accordance with Exchange policies.

All securities issued are subject to a four-month plus one day hold period in Canada from closing. The offering remains subject to final Exchange approval. This financing demonstrates how junior mining companies can leverage tax-advantaged structures to attract investment for high-risk exploration, particularly in jurisdictions like British Columbia that offer additional provincial incentives. For new information about the company's projects, please visit TrailbreakerResources.com. The original release can be viewed on www.newmediawire.com.