en.Wedoany.com Reported - Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTC) announced it has entered into an agreement with Red Cloud Securities Inc. to raise aggregate gross proceeds of C$8,000,230 through a bought deal private placement financing. Red Cloud is acting as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters. Due to strong investor demand, the company subsequently increased the aggregate gross proceeds from the previously announced C$8 million to C$10 million.
Under the expanded offering terms, the underwriters agreed to purchase 17,858,000 units at C$0.28 per unit for proceeds of C$5,000,240, and 12,988,000 flow-through units at C$0.385 per unit for proceeds of C$5,000,380. Each unit consists of one common share and one-half of one common share purchase warrant. Each flow-through unit consists of one flow-through common share and one-half of one flow-through warrant. Each whole warrant entitles the holder to purchase one common share at a price of C$0.40 for a period from the 61st day to 36 months after the closing of the offering. The company has also granted the underwriters an option, exercisable up to 48 hours prior to closing, to purchase a combination of units and flow-through units for additional gross proceeds of up to C$2 million.
Net proceeds from the sale of units are planned to be used for the exploration and advancement of the La Plata project in southwestern Colorado, as well as for general corporate purposes and working capital. Proceeds from the flow-through units are planned to be used to fund qualifying Canadian exploration expenses related to the Keno Silver project in the Yukon Territory, with expenditures to be incurred on or before December 31, 2027, and such expenditures will be renounced to subscribers effective December 31, 2026. The offering is expected to be completed under the listed issuer financing exemption in Canada, with units also being offered in the United States under applicable private placement exemptions and in certain other jurisdictions outside of Canada and the United States. The company stated the offering is scheduled to close on or about June 22, 2026, or such other date as agreed by the parties. Final completion remains subject to customary conditions, including receipt of required regulatory approvals and the approval of the TSX Venture Exchange.
In the market, Kitco News reported on June 1 that silver prices remained firm despite pressure on the broader precious metals market from a stronger U.S. dollar and rising Treasury yields. Spot silver was trading near $75.875 per ounce, up 0.80% on the day. Geopolitical tensions in the Middle East continued to impact commodity markets through their influence on energy prices and inflation expectations. Kitco noted that the next upside target for silver bulls is to break through the $76.00 to $76.50 range, with further targets at $78.00 and $78.92.
A report from Investing.com on June 1 showed that Citigroup has turned bullish on copper after maintaining a largely neutral stance for several months. Analyst Tom Mulqueen reported that the bank has raised its near-term copper price forecast to $14,500 per metric ton and is targeting $15,000 per ton over six to twelve months. Citigroup stated, "U.S. copper tariff concerns could still provide support through June," citing tightening supply and demand from energy transition and AI infrastructure as key factors. The report also noted that Citigroup has become more conservative on copper supply growth, assuming that scrap and mine production will both fall short of expectations in 2026 and 2027, leading to an estimated market deficit of approximately 360,000 metric tons in 2027. On the demand side, Citigroup highlighted that improvements in global manufacturing PMIs point to "upside for cyclical consumption."
Additional commentary from Investing.com on June 2 emphasized copper's role in supporting expanding AI infrastructure. During the 2026 Computex Taipei trade show, NVIDIA CEO Jensen Huang stated: "We should use as much copper as we can, for as long as we can, but copper has its limitations." He added, "Use optics where necessary, use copper where possible." The report noted that photonics and optical technologies are becoming increasingly important as AI workloads scale, while also highlighting copper's continued role in data center connectivity and infrastructure.
Bloomberg reported on June 3 that copper prices retreated after hitting a three-week high amid escalating Middle East tensions. Copper closed at $14,040.50 per ton on June 2, the highest level since May 13, before retreating to $13,916 per ton. Traders remain focused on U.S. tariff decisions that could impact copper imports and noted an increase in U.S. metal inventories ahead of such decisions, thereby tightening supply in other markets.
On May 20, Peter Krauth of Silver Stock Investor highlighted Metallic Minerals' growing Yukon placer gold royalty business. Krauth noted that the company has reached agreements with operators at Australia Creek, Dominion Creek, and South Keno/Granite Creek for the 2026 production season, with all three sites preparing for production. Since 2023, Australia Creek has generated over C$1.1 million in royalty gold value, with 2025 being the strongest year to date. Krauth wrote that multiple sites entering production, combined with a 64-square-kilometer land holding, provides potential for record royalty production and cash flow in 2026. According to Krauth, the royalty model allows operators to fund mining activities while Metallic collects a 10% to 15% royalty, supporting near-term cash flow as the company continues to advance its Keno Silver and La Plata projects.
According to a May 27 report from Couloir Capital, the firm maintains a Buy rating on Metallic Minerals and has raised its fair value estimate from the current share price of C$0.31 to C$1.15 per share, implying an expected upside of 272.1%. The report stated that the company's updated NI 43-101 resource estimate for the La Plata project confirmed an inferred resource of 181.4 million tonnes grading 0.36% copper equivalent. Metallurgical testing conducted with the University of Columbia achieved "nearly 70% copper recovery directly from whole sulfide material, producing 99.9% pure copper." Regarding the Keno Silver project, the report noted that the company confirmed a 5,000-meter drill program targeting resource expansion and new discoveries, which will build on the existing inferred resource of 18.2 million ounces of silver equivalent. The report also noted that current silver prices remain "well above the $22.50/oz assumption used in the 2024 mineral resource estimate, supporting potential resource growth and future updates."
Project information provided by the company shows that the updated NI 43-101 resource estimate for the La Plata project from January 2026 outlines 1.31 billion pounds of copper, 17 million ounces of silver, and 272,000 ounces of platinum group metals plus gold. 2026 activities include resource expansion drilling, high-priority target drilling, metallurgical test work, and baseline environmental work to expand the Phase II permit. At the Allard resource area within the La Plata project, a 4,500-meter drill program funded by Newmont Corp. (NEM:NYSE; NGT:TSX; NEM:ASX) has been incorporated into the 2026 resource update. For the Keno Silver project, the 2026 exploration program includes resource expansion drilling and follow-up drilling on high-priority targets outside the existing resource area. The company's Klondike gold assets have royalty agreements in place, with production continuing in 2025, and additional royalty agreements are being advanced.
Metallic Minerals Corp. has a market capitalization of C$70.47 million, with 213.53 million shares outstanding and a 52-week price range of C$0.20 to C$0.47. Insiders and management hold 15% of shares, while institutions hold 20%. Strategic investors (including Newmont and Eric Sprott) hold 30%, with the remaining 45% held by retail investors.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
