Loyalist Exploration Limited (CSE:PNGC) has terminated its previously announced non-brokered private placement and closed a shares-for-debt transaction, providing the company with capital to advance its Tully Gold Project in Timmins, Ontario. The announcement, reported via NEWMEDIAWIRE, signals that Loyalist has secured the funding needed to complete key technical milestones and move toward production.
The private placement, originally announced on August 10, 2026, raised $1,000,000 through the sale of 25,000,000 common shares at $0.04 per share in a first tranche that closed on August 31, 2026. That first tranche represents the final closing of the offering, and no further tranches will be completed. The proceeds will be used to complete ongoing NI 43-101 technical reports, including a resource estimate and preliminary economic assessment for the Tully project, as well as ongoing production permitting work, property payments, and general working capital.
In a separate transaction, Loyalist settled $113,285.00 of outstanding indebtedness by issuing 2,832,125 common shares at $0.04 per share. Of that amount, $45,000 of debt owed to Errol Farr, President, CEO, and director, and to Leonard Mackenzie, Vice President of Exploration, was settled through the issuance of 1,125,000 common shares. Because Farr and Mackenzie are related parties under Multilateral Instrument 61-101, the transaction is a related party transaction; the company relied on exemptions from formal valuation and minority approval requirements on the basis that the fair market value does not exceed 25% of its market capitalization. All securities issued in the shares-for-debt transaction are subject to a four-month-and-one-day hold period.
Errol Farr commented, “We are grateful for the support of our subscribers, which has enabled us to achieve our objective of funding the ongoing Tully PEA. With this capital in place, we continue to execute on our strategy of becoming the next gold producer in the Timmins camp by systematically advancing Tully toward a fully funded and permitted mining operation.”
In connection with the first tranche, Loyalist paid $37,200 in cash finder’s fees to Haywood Securities Inc. and issued 930,000 non-transferable broker warrants, each exercisable at $0.075 per common share until August 31, 2028. The securities issued in the first tranche also carry a four-month-and-one-day hold period.
The news matters because it gives Loyalist the financial runway to complete the Tully preliminary economic assessment and permitting work, critical steps toward transforming the project from an exploration asset into a potential gold producer. For investors, the termination of the private placement removes uncertainty about further dilution while the shares-for-debt transaction strengthens the balance sheet by converting liabilities into equity. For the Timmins mining camp, a well-funded Loyalist could accelerate development of a new underground gold mine, supporting local economic activity and reinforcing the region’s status as a prolific gold jurisdiction. The company’s other Timmins projects—DeSantis, Gold Rush, and Loveland—may also benefit as the company sharpens its focus on high-quality assets. The original release is available at www.newmediawire.com.
