Fitzroy Minerals Secures Over C$1.56 Million for Chile Copper Projects via Warrant Exercise

Holders of 98.95% of the warrants from Fitzroy Minerals' September 2024 private placement exercised them before the September 20, 2026 expiry date. The exercise generated over C$1.56 million at $0.25 per share. The company said the proceeds strengthen its financial position as it advances work programs at the Buen Retiro and Caballos copper projects in Chile. Fitzroy Minerals also granted 4,200,000 stock options to certain directors, officers, and consultants. The options carry an exercise price of $0.455 and expire on October 1, 2031.

Company Overview

Fitzroy Minerals (TSXV: FTZ | OTCQX: FTZFF | FSE: C3Y) is focused on exploring and developing copper assets with substantial upside potential in Chile. The company's 2 lead properties are the Buen Retiro Copper Project near Copiapó and the Caballos Copper Project in Valparaiso.

Warrant Exercise Raises C$1.56 Million

Fitzroy Minerals reported that holders of 98.95% of the warrants issued in its private placement had exercised them on or before the September 20, 2026 expiry date. The private placement closed on September 20, 2024.

The private placement originally included 6,323,911 warrants and finder's warrants. Each was exercisable for 2 years from closing into 1 common share at $0.25. Holders exercised 6,257,243 of them, generating proceeds of approximately C$1,564,311.

Chairman of Fitzroy Minerals, Campbell Smyth, thanked shareholders and tied the take-up to the company's strategy and development plans:

"We are grateful for the continued support of our shareholders. The exercise of almost ninety-nine percent of the outstanding warrants during a period of extreme market volatility is a strong endorsement of our strategy and investment case. Fitzroy is now well funded to rapidly de-risk the Buen Retiro heap leach development plan while accelerating exploration at both Buen Retiro and Caballos."

Work Programs at Buen Retiro & Caballos

The company stated that the proceeds strengthen its financial position for work programs at its 2 projects. These are the Buen Retiro Copper Project near Copiapó and the Caballos Copper Project in Valparaiso.

Stock Option Grant

Fitzroy Minerals granted 4,200,000 stock options to certain directors, officers and consultants under its stock option plan. Each option is exercisable into 1 common share at $0.455 until October 1, 2031, subject to earlier termination under the plan. All options vested immediately on the grant date. The options and the underlying shares are subject to a 4-month-and-1-day hold period from issuance.

The grant to directors and officers is a related party transaction under Multilateral Instrument 61-101. The company relied on exemptions under sections 5.5(b) and 5.7(1)(a) from the formal valuation and minority shareholder approval requirements. Those exemptions apply because Fitzroy Minerals is not listed on a specified market and the fair market value of the options does not exceed 25% of its market capitalization.