New Break Resources Ltd. (CSE: NBRK | OTCQB: NBRKF | FSE: O91) has announced a non-brokered private placement offering of up to 2,500,000 flow-through common shares priced at $0.22 per share, targeting gross proceeds of up to $550,000. The company intends to deploy all proceeds toward ongoing drilling at its Moray gold project, located approximately 49 km southeast of Timmins, Ontario in the Abitibi greenstone belt. Closing is expected within two business days, subject to regulatory approvals including that of the Canadian Securities Exchange.

Key Points

  • New Break Resources Ltd. (CSE: NBRK | OTCQB: NBRKF | FSE: O91)
  • Non-brokered private placement of up to 2,500,000 flow-through shares at $0.22 per share for gross proceeds of up to $550,000
  • CEE renouncement effective no later than December 31, 2026; securities subject to a four-month-and-one-day statutory hold period
  • Investors may be watching for CSE approval confirmation and early drilling results from the Moray gold project

Flow-Through Structure and Canadian Tax Advantages for Investors

Each share issued under the offering qualifies as a flow-through share under subsection 66(15) of Canada's Income Tax Act. The gross proceeds will be designated as Canadian Exploration Expenses and will qualify as flow-through mining expenditures. New Break has committed to renouncing these expenses to purchasers with an effective date no later than December 31, 2026. This structure allows investors to claim exploration deductions against their Canadian taxable income, a feature often regarded as a meaningful incentive for financing junior mining exploration in Canada.

Proceeds Directed to Ongoing Drilling at the Moray Gold Project

The entirety of the offering proceeds will fund continued drilling at New Break's Moray gold project in the heart of the Ontario Abitibi greenstone belt, one of Canada's most prolific gold-producing regions. The project sits approximately 49 km southeast of Timmins and 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. The company describes the area as a well-established mining camp with access to existing infrastructure, which the release suggests may support efficient exploration activity.

Finder's Fees and Conditions Attached to the Offering

New Break may pay finder's fees of 6% of gross proceeds sourced through qualifying finders, along with finder warrants entitling holders to purchase common shares equal to 6% of flow-through shares sold, exercisable at $0.22 per share for 24 months from closing. All securities issued are subject to a four-month-and-one-day statutory hold period under applicable Canadian securities laws. Closing remains conditional on receipt of all necessary regulatory and exchange approvals. The immediate share price impact was not clear from available public information.