New Break Resources Ltd. (CSE: NBRK) has announced a non-brokered private placement 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 funds are earmarked for ongoing drilling at the company's Moray gold project, located approximately 49 km southeast of Timmins, Ontario. The offering carries tax advantages for Canadian investors through the flow-through share structure, with closing expected within two business days of the announcement.

Key Points

  • New Break Resources Ltd. (CSE: NBRK / OTCQB: NBRKF / FSE: O91) announced the private placement on October 30, 2026
  • Up to 2,500,000 flow-through shares offered at $0.22 per share for gross proceeds of up to $550,000
  • Proceeds will fund Canadian Exploration Expenses at the Moray gold project; renouncement effective no later than December 31, 2026
  • Investors should watch for Canadian Securities Exchange approval and confirmation of closing

Flow-Through Structure Offers Tax Renouncement for Moray Gold Drilling

Each share issued under the offering qualifies as a flow-through share under subsection 66(15) of the Income Tax Act (Canada). The gross proceeds will be directed toward Canadian Exploration Expenses qualifying as flow-through mining expenditures under the Act. New Break has committed to renouncing these expenses to purchasers with an effective date no later than December 31, 2026. This structure allows eligible Canadian investors to claim exploration deductions, a feature commonly used by junior mining companies to attract financing for early-stage drilling programs.

Moray Gold Project Drilling Program in Ontario's Abitibi Greenstone Belt

The Moray gold project sits within the Ontario Abitibi greenstone belt, a well-established mineral-rich corridor. New Break's release states that proceeds will support ongoing drilling at the site. The project is located approximately 49 km southeast of Timmins, Ontario, and 32 km northwest of the Young-Davidson gold mine operated by Alamos Gold Inc. The company also holds a 20% carried interest in the Sundog gold project in Nunavut and owns 6.0 million shares of Guardian Exploration Inc. (TSXV: GX), giving shareholders additional exploration exposure.

Finder's Fees, Hold Period, and Closing Conditions

New Break may pay finder's fees of 6% of gross proceeds introduced by qualified finders, along with finder warrants to purchase common shares at $0.22 each for a period of 24 months from closing. All securities issued under the offering are subject to a statutory hold period of four months and one day under applicable Canadian securities laws. Closing is expected within two business days, subject to conditions including receipt of all necessary approvals, including approval from the Canadian Securities Exchange. The immediate share price impact was not clear from available public information.