Trailbreaker Resources Announces Up to $3 Million Flow-Through Financing for Critical Minerals Exploration

Trailbreaker Resources Ltd. has announced a non-brokered private placement offering designed to raise up to $3 million through flow-through share structures. The offering consists of two components: up to 2,142,857 CMETC flow-through units at $0.56 per unit to raise $1.2 million, and up to 3,600,000 flow-through units at $0.50 per unit to raise $1.8 million. Each unit includes 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 issuance.

The financing structure represents a strategic approach to mineral exploration funding in Canada. Flow-through shares allow companies to transfer tax deductions for exploration expenses to investors, making these investments particularly attractive to those seeking to reduce their tax liabilities while supporting resource development. The CMETC flow-through units specifically target critical minerals exploration, reflecting growing government and market emphasis on securing supply chains for minerals essential to clean energy technologies and national security.

All proceeds from the offering will be used to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures under the Income Tax Act. For the CMETC flow-through units, these qualify as flow-through critical mineral mining expenditures, while for British Columbia purchasers, they also qualify as BC flow-through mining expenditures under provincial tax legislation. The company has committed to incurring these qualifying expenditures on its British Columbia properties by December 31, 2027, with renunciation to investors effective December 31, 2026.

The timing of this financing coincides with increased focus on domestic critical minerals development across North America. Governments have implemented various incentives to stimulate exploration for minerals like lithium, cobalt, and rare earth elements, which are essential for electric vehicles, renewable energy infrastructure, and advanced electronics. By utilizing flow-through structures, Trailbreaker can access capital at potentially lower effective costs while providing investors with immediate tax benefits.

For investors and industry observers, this offering highlights the continued importance of flow-through financing mechanisms in Canada’s junior mining sector. These structures have historically played a crucial role in funding early-stage exploration when traditional financing might be less accessible. The dual structure of the offering—with both regular flow-through units and critical minerals-focused units—demonstrates how companies are adapting financing strategies to align with evolving policy priorities and market demands.

The offering remains subject to acceptance by the TSX Venture Exchange, and all securities issued will be subject to a standard four-month hold period plus one day from closing in Canada. The company has indicated that proceeds will advance its various exploration projects, though specific property details were not disclosed in the announcement. For additional information about the company’s projects, investors can visit TrailbreakerResources.com.

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