Storm Exploration Inc. has secured $2,000,000 in gross proceeds through a non-brokered private placement, bringing in a corporation beneficially owned by Eric Sprott to subscribe for the entire offering and become the company's largest shareholder.

The financing involves the issuance of 5,000,000 units priced at $0.40 each. Every unit comprises one common share and one-half of a common share purchase warrant. Each whole warrant enables the holder to acquire an additional common share at $0.55 for a period of two years following the closing of the offering. No finders' fees or commissions are payable on the transaction.

Upon completion of the offering, Mr. Sprott's corporation will hold more than 10% of the company's issued and outstanding common shares, making him a reporting insider. On a partially diluted basis, assuming the exercise of the warrants, the ownership interest will remain below 20% due to a control person blocker incorporated into the warrant terms. The transaction is conditional upon receiving necessary regulatory approvals, including acceptance from the TSX Venture Exchange, and securities issued will carry a four-month and one-day hold period.

Net proceeds from the private placement will directly fund upcoming exploration drilling programs at the Gold Standard project alongside general corporate and working capital requirements. Storm Exploration acquired a 100% interest in the project in May 2024 following the completion of its option agreement payment obligations, and subsequently received a three-year exploration drill permit on August 19, 2026, covering the entire five-kilometre length of the volcanogenic massive sulphide target. The company expects to commence up to 3,000 metres of drilling at the property in the third quarter of 2026.

"Mr. Sprott's investment will strengthen Storm's treasury and shareholder base," says Bruce Counts, President & CEO of Storm Exploration. "Junior exploration is speculative. We appreciate the confidence he has shown in our team."

"Storm is about to commence up to 3,000m of drilling at Gold Standard, transitioning from speculation to verification of the large Volcanogenic Massive Sulphide ("VMS") target. We are entering an exciting phase of exploration."

— Bruce Counts, President & CEO of Storm Exploration

Read the full announcement: Eric Sprott Invests $2 Million in Storm Exploration