Cygnus intends to advance resource evaluation and technical studies following successful A$25m placement

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.Strong demand from major shareholders saw raising priced at a discount to close of 6%; Three rigs now drilling the Golden Eye gold-copper discovery and major new targets to be tested in the coming quarterSubscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.Chibougamau Copper-Gold Project, Canada Highlights“This new round of funding is designed to grow our resources further, upgrade more resources into high confidence categories and aggressively drill some recently identified high grade gold-copper targets.“With three rigs now operating and production studies progressing, we have several avenues for driving rapid shareholder value”.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.TORONTO and PERTH, Western Australia, March 12, 2026 (GLOBE NEWSWIRE) — Cygnus Metals Limited (ASX:CY5; TSXV:CYG; OTCQB:CYGGF) is pleased to advise that it has received commitments from institutional and sophisticated investors to raise A$25 million (before costs) through the issue of approximately 156.3 million fully paid ordinary shares in the Company (“Shares”) at an issue price of A$0.16 per Share (“Placement”). Pro-forma cash at bank and liquid assets post the raising are expected to be approximately A$35 million (before Placement costs and based on current cash on hand and liquid investments).Use of fundsProceeds of the Placement are planned to be used at the Chibougamau Copper-Gold Project to cover resource growth, resource conversion, exploration of multiple prospects (including Joe Mann and Gwillim), ongoing permitting work, minor early capital works and completion of an updated economic study following the preliminary economic assessment (“PEA”) previously completed by Doré Copper Mining Corp. in 2022. Other uses include general working capital and costs associated with the Placement.Note: Cygnus cautions that the PEA is a preliminary technical, conceptual and economic study undertaken by Doré of the initial evaluation and potential development of the Chibougamau Project. It is at scoping study level only, which is based on a lower level of technical assessment that is not sufficient to support the estimation of Ore Reserves and is inherently uncertain. The production targets and forecast financial information disclosed in the PEA are underpinned by Measured Mineral Resources (approximately 1.17%), Indicated Mineral Resources (approximately 32.10%) and Inferred Mineral Resources (approximately 66.73%). However, Cygnus is not able to disclose the outcomes of the PEA as the significant proportion of Inferred Resources included in the Life of Mine means that pursuant to ASX and ASIC guidance there is not considered to be sufficiently reasonable grounds for the production targets and forecast financial information disclosed in the PEA. Accordingly, Cygnus is not disclosing the production targets and forecast financial information reported in the PEA and cautions investors against making investment decisions based on such targets and forecasts.Placement Cygnus will undertake the Placement in a single tranche of 156,250,000 Shares which will be conducted using the Company’s existing capacity under ASX Listing Rules 7.1 (49,813,666 Shares) and 7.1A (106,436,334 Shares) to raise a total of A$25 million (before costs), with settlement expected to occur on Thursday, 19 March 2026.

Joint Lead Managers’ fees equate to 5% of the Placement proceeds (less Chairman’s list).The issue price represents a discount of 5.9% to the last closing price of A$0.17 on Tuesday, 10 March 2026 and a 15.2% discount to the 15-day VWAP of A$0.189.Indicative Timetable** The above timetable is indicative only and remains subject to change at Cygnus’ discretion, subject to compliance with the Corporations Act, the ASX Listing Rules and other applicable laws. Cygnus reserves the right to change the timetable, subject to regulatory requirements. This announcement has been authorised for release by the Board of Directors of Cygnus.About Cygnus MetalsCygnus Metals Limited (ASX: CY5, TSXV: CYG, OTCQB: CYGGF) is a diversified critical minerals exploration and development company with projects in Quebec, Canada and Western Australia. The Company is dedicated to advancing its Chibougamau Copper-Gold Project in Quebec with an aggressive exploration program to drive resource growth and develop a hub-and-spoke operation model with its centralised processing facility. In addition, Cygnus has quality lithium assets with significant exploration upside in the world-class James Bay district in Quebec, and REE and base metal projects in Western Australia. The Cygnus team has a proven track record of turning exploration success into production enterprises and creating shareholder value.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.