Hertz Energy Inc. (CSE: HZ, OTC: HZLIF, FSE: QE2) announced on March 27, 2026 that it has completed the first tranche of a previously announced non-brokered private placement, generating aggregate gross proceeds of $1,000,000. This initial close forms part of a larger financing program comprising a LIFE Offering and a concurrent FT Offering. The placement closed with a total of 2,330,000 units issued in this tranche, comprised of both LIFE Units and flow-through FT Units, each structure tailored to support exploration spending and working capital needs for the Company’s portfolio.
The tranche split into 1,650,000 Units at $0.40 per Unit for gross proceeds of $660,000 under the LIFE Offering, and 680,000 FT Units at $0.50 per FT Unit for gross proceeds of $340,000 under the FT Offering. Each LIFE Unit consists of one common share and one-half of a common share purchase warrant, while each FT Unit contains one flow-through share (as defined under the Income Tax Act (Canada) and the Taxation Act (Québec)) plus one-half of a warrant on the same terms. The Company confirmed that securities issued under the LIFE Offering are not subject to a statutory hold period, whereas the FT securities bear the mandatory hold of four months and one day.
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Warrants, exercise terms and broker arrangements
All Warrants included in the Units grant the holder the right to acquire the underlying Warrant Shares at an exercise price of $0.60 per whole common share and expire 24 months from closing; importantly, these Warrants will not be subject to accelerated expiry. In connection with this tranche closing the Company paid finders and brokers a cash commission totaling $67,200, equal to 7% of the gross proceeds, and issued 119,700 Broker Warrants. Each Broker Warrant permits the acquisition of one-half common share on the same exercise terms as the Offering Warrants and also carries a 24-month life. The Company has an extension to complete a final subsequent tranche on or before May 11, 2026 and has confirmed there is no undisclosed material information.
Allocation of proceeds and project priorities
The funds raised will be directed primarily toward exploration on Hertz Energy’s recent acquisitions and targets, notably the Crag and Rod properties which include the Craig silver-lead-zinc deposit (collectively the Craig Silver Project) in east-central Yukon, and the Lake George Antimony–Tungsten-Gold Project (the Tungmony Project) in New Brunswick. The Company also intends to use a portion of proceeds for general working capital. The Craig Silver Project lies within the Craig Belt, a sub-belt of the approximately 175-kilometre Rackla Belt, a corridor known for very high-grade silver, lead, zinc and gold mineralization; the Craig Deposit remains open along strike and at depth, with historical drilling returning intervals that include samples exceeding 200 g/t silver alongside significant lead and zinc values.
Regional context and complementary assets
The Tungmony Project surrounds the historic Lake George Antimony Mine, once a major North American antimony producer operating intermittently from 1876 to 1996 (Government of New Brunswick, Mineral Commodity Profile No. 12, 2018). Hertz Energy’s broader portfolio also includes the 100%-owned Harriman Antimony Project in the Gaspé Region, Québec, and the Agastya Lithium Project in James Bay, Québec, all of which position the company within critical minerals supply chains that are strategically important to energy transition materials and specialty metals markets.
Regulatory, technical review and forward-looking statements
The securities issued in this private placement have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption. The Company reiterated customary forward-looking statements cautions: expectations about the Offering, the tax treatment of FT Shares and the results of exploration are subject to risks including commodity price volatility, financing availability, regulatory and environmental matters, geological uncertainty and other factors that could cause actual results to differ materially. Investors should treat forward-looking information with caution and refer to the Company’s filings for additional risk disclosures.
Qualified person and technical verification
All scientific and technical content in the release has been reviewed and approved by Paul Ténière, P.Geo., a geological consultant to the Company and the Qualified Person for purposes of NI 43-101. The release notes that historical results cited are historical in nature unless stated otherwise and have not been independently verified by the Qualified Person, and therefore readers should exercise appropriate caution when interpreting legacy data.