en.Wedoany.com Reported - Canada's Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCQB) announced on June 22 that it has completed its previously announced and upsized "bought deal" private placement, raising total gross proceeds of C$10,294,335.80.
The total includes proceeds from the partial exercise of the underwriters' option. In the offering, the company issued 18,906,985 units at C$0.28 per unit, raising C$5,293,955.80, and 12,988,000 flow-through units at C$0.385 per unit, raising C$5,000,380.
Red Cloud Securities Inc. acted as lead underwriter and sole bookrunner for the offering, with the syndicate also including ATB Capital Markets Corp. and Integrity Capital Group Inc. Each unit sold consists of one common share and one-half of one common share purchase warrant, with each full warrant entitling the holder to purchase one non-flow-through common share of the company at a price of C$0.40 during the period from August 22, 2026, to June 22, 2029.
Chairman and CEO Greg Johnson expressed satisfaction with the strong investor demand, which allowed the company to upsize the financing. He stated that this reflects market recognition of the quality of the company's copper, silver, and critical minerals portfolio, particularly the recent 23% expansion of the La Plata resource and the first-ever quantification of platinum group elements and other associated critical minerals. At the same time, the strategic importance of domestically produced critical minerals is increasing.
Johnson said that with this additional capital, MMG is well-positioned for an active year ahead, advancing discovery and resource growth-focused exploration at its La Plata copper-silver-gold-platinum group elements and critical minerals project in southwestern Colorado and the Keno Silver project in central Yukon, while continuing to build the company's Yukon gold royalty business.
Net proceeds from the unit sales will be used for exploration and development of the La Plata project, general corporate purposes, and working capital. Proceeds from the flow-through units will be used for qualified Canadian exploration expenditures on the Keno Silver project, with all qualifying expenditures to be renounced to subscribers by December 31.
In a May 27 report, Couloir Capital maintained a "Buy" rating on Metallic Minerals, adjusting its fair value estimate from the current share price of C$0.31 to C$1.15 per share, implying an upside of 272.1%. The firm praised the progress at the La Plata project, noting that the updated NI 43-101 resource estimate confirmed 181.4 million tonnes of inferred resources at a copper equivalent grade of 0.36%. It also highlighted recent metallurgical test work conducted in collaboration with the University of Colorado, which achieved nearly 70% copper recovery from whole sulfide material and produced 99.9% pure copper, enhancing the project's processing and metallization potential.
Regarding the Keno Silver project, Couloir noted the planned 5,000-meter drill program aimed at expanding resources and discovering new ore bodies. The program is expected to build on the existing 18.2 million ounces of silver equivalent inferred resources, with all deposits remaining open for further exploration. The firm also pointed out that current silver prices are well above the US$22.50 per ounce assumed in the 2024 mineral resource estimate, supporting potential resource growth and future updates.
Couloir also highlighted the growth of Metallic Minerals' Yukon placer gold royalty portfolio, noting that the company's productive placer gold royalty business in the Klondike and Mayo regions has tripled. The firm expects 2026 to be a record year for production and cash flow, based on the significant gold royalty value generated since 2023.
For the La Plata project, Couloir emphasized two milestones achieved in 2026: a substantial expansion of the NI 43-101 resource and a metallurgical breakthrough producing 99.9% pure copper directly from sulfide material. The firm believes this substantially de-risks the project's future processing pathway and strengthens the case for developing a large-scale U.S. critical minerals system.
On May 20, Peter Krauth of Silver Stock Investor provided an update on Metallic Minerals' expanding Yukon placer gold royalty business. He noted that the company has evolved from managing a single operation to overseeing a multi-operator platform covering the Klondike and Mayo gold districts. Krauth highlighted agreements reached with operators at Australia Creek, Dominion Creek, and South Keno/Granite Creek for the 2026 production season, with all three sites ready for production. He reported that Australia Creek has generated over C$1.1 million in gold royalty value since 2023, with 2025 being its most successful year. Krauth expressed optimism for 2026, expecting record royalty production and cash flow due to multiple operations entering production and the 64-square-kilometer land package. He also mentioned ongoing drilling at Australia Creek aimed at expanding the production area, Dominion Creek moving toward full production, and South Keno/Granite Creek being developed as a drill-supported gold system.
Krauth explained that the royalty model allows operators to fund mining activities while Metallic Minerals receives a 10% to 15% royalty, providing the company with near-term cash flow as it advances the Keno Silver and La Plata projects.
According to a June 22 report by Akhtar Faruqui of FX Street, silver prices paused a three-day decline, stabilizing at approximately US$65.90 per ounce during Monday's Asian trading session. Despite the pause, the outlook for silver remains uncertain due to geopolitical tensions and economic policies that could impact metal values. Recent developments in U.S.-Iran relations have reignited concerns, potentially further depressing silver prices.
In a June 20 article, Alan Long of TradingKey wrote that copper prices have surged over 60% since April 2025, primarily driven by growing demand for copper from the rapidly expanding artificial intelligence sector. The development of AI technology has increased demand for chips, servers, and optical modules, with profound impacts on power systems, where copper is a key component. AI data centers have become a major driver of copper demand growth. According to Wall Street News, a single 1-gigawatt AI smart factory could use up to 50,000 metric tons of copper. Alan Long stated that with the industry targeting 15 gigawatts of capacity annually, this implies an additional 750,000 metric tons of copper demand per year from data centers alone. The International Energy Agency predicts that global data center electricity consumption will reach approximately 945 terawatt-hours by 2030, doubling from current levels.
Metallic Minerals Corp. has a market capitalization of C$44.89 million and 213.53 million shares outstanding. The company's 52-week price range is C$0.20 to C$0.47. Insiders and management hold 15% of shares, institutions hold 20%, strategic investors (including Newmont at 9.5% and Eric Sprott at 10.5%) hold 20%, and the remaining 45% is held by retail investors.
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