New Risk • Apr 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 40% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks No financial data reported. Shareholders have been substantially diluted in the past year (40% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (16% average weekly change). Market cap is less than US$100m (CA$14.5m market cap, or US$10.6m). Announcement • Apr 01
Red Canyon Resources Ltd. announced that it has received CAD 2.492 million in funding from Teck Resources Limited On March 31, 2026, Red Canyon Resources Ltd. closed the transaction by closing its second and last tranche. The second tranche consists of 1,725,000 Units of the company at a price per Unit of CAD 0.20 for gross proceeds of CAD 345,000 and for aggregate gross proceeds for the transaction is CAD 2,492,000. The final tranche included an investment by returning investor Teck Resources Ltd., which maintained its 9.9% equity interest in Red Canyon on a partially diluted basis. Cash finders' fees of CAD 12,250 and 61,250 finders' warrants exercisable at 30% common share for a 24-month term were paid on a portion of the final tranche. All securities issued in the final tranche are restricted from trading until August 1, 2026. Announcement • Feb 26
Red Canyon Resources Ltd. announced that it expects to receive CAD 3.5 million in funding Red Canyon Resources Ltd announced a non-brokered private placements to issue 10,000,000 common shares at an issue price of CAD 0.20 for the proceeds of CAD 2,000,000 under LIFE Offering and 7,500,000 units at an issue price of CAD 0.20 for the proceeds of CAD 1,500,000 under concurrent private placement on February 25, 2026. Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant shall entitle the holder to purchase one common share of the Company at a price of CAD 0.30 any time on or before that date which is 24 months after the Closing Date. All securities issued in connection with the Concurrent Offering will be subject to a statutory hold period of four months and one day. The two offerings are expected to close on or about March 20, 2026. Completion of the offerings is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange Finders’ fees may be paid in connection with the offerings. Directors and officers of the Company may acquire securities under the offerings. . 
