No Warrants Required: McFarlane Raises $15 Million at a Premium

Palisades first invested in McFarlane Lake Mining Ltd. (CSE: MLM) in September 2025, at C$0.15 per unit, in the financing that funded McFarlane’s acquisition of the Juby Gold Project from Aris Mining. At the time, Juby hosted 1.01 million ounces of Indicated resources at 0.98 g/t and 3.17 million ounces of Inferred at 0.89 g/t.

Our participation added 8,790,000 warrants to our portfolio, exercisable at C$0.25 through September 2028 — a roughly 1.6% partially diluted interest in the company.

Roughly eight months later, in May 2026, McFarlane announced a C$6.75 million strategic investment led by Michael Gentile and Pierre Beaudoin, funding an aggressive drill program at Juby.

That program is now delivering. This week McFarlane released an updated resource estimate for Juby: 1.14 million ounces Indicated at 0.95 g/t and 5.06 million ounces Inferred at 0.87 g/t — 6.2 million ounces in total, representing increases of 13% and 59%, respectively. Roughly 13,000 metres of new drilling contributed, including the newly defined 826 Zone, where inferred grades run approximately 50% above McFarlane’s other deposits. The updated estimate also reflects a higher gold price assumption of US$3,600/oz, versus US$2,500/oz in the prior estimate.

A day later, McFarlane announced a C$15 million bought deal — flow-through shares at C$0.525 and common shares at C$0.38, with no warrants attached. The hard-dollar price sits more than 150% above our C$0.15 entry, and comfortably above the C$0.25 strike on the warrants we hold. Proceeds will fund continued drilling at Juby, including infill work aimed at converting Inferred ounces into the Indicated category.

McFarlane’s no-warrant financing is by no means an isolated case across Palisades’ portfolio — a theme we have returned to in recent weeks. Earlier this month, Sun Summit Minerals Corp. (TSX-V: SMN), in which Palisades holds 3,000,000 warrants, also announced a share-only financing.

With the seasonal summer slowdown behind us and gold’s resurgence, financing activity across the sector is picking up. Issuers appear to recognize the shift in market conditions — and the diminished need to compensate investors with warrants to offset sector risk.

These transactions offer further evidence of a maturing junior resource market, and reinforce both our thesis on the leverage embedded in this cycle and our strategy of building a portfolio positioned for asymmetric returns.

We will keep you posted as things develop across the portfolio.

Sincerely,

The Palisades Team