Meryllion Resources Plans 4.4 Million Share Issuance to Settle CAD$141,000 Lease Option Payment

Details of Lease Option Payment and Share Issuance

Meryllion Resources intends to satisfy its lease option payment through equity issuance rather than cash disbursement. The company will issue 4,406,250 common shares at a deemed price of CAD$0.032 per share to Bull Mountain Resources LLC, as an alternative to the CAD$141,000 (US$100,000) cash payment stipulated in the lease and option agreement dated July 11, 2025.

This agreement governs rights to the Makenzie Gold, Silver and Antimony Project and was initially disclosed on July 15, 2025. Utilizing shares for payment helps Meryllion conserve cash while granting Bull Mountain Resources LLC equity participation in the company.

Regulatory Approval Process for Share Issuance

The share issuance is contingent upon obtaining all required regulatory approvals, primarily from the Canadian Securities Exchange (CSE), which regulates MYR trading. The CSE will review the transaction structure, share valuation, and compliance with securities regulations related to private placements and related-party transactions.

This regulatory review is standard for equity issuances by CSE-listed firms. The timeline for CSE approval was not specified. Investors should watch for updates via CSE filings and company announcements to confirm regulatory clearance before shares are issued.

Hold Period and Compliance with Securities Regulations

All 4,406,250 shares issued will be subject to a hold period of four months and one day from issuance, as mandated by Canadian securities laws. This restriction prevents immediate resale, ensuring orderly market trading and protecting against sudden dilution.

The hold period is required under National Instrument 45-102 Resale of Securities and related provincial regulations, applying to both related and arm's-length parties to maintain market integrity.

Overview of the Makenzie Gold, Silver and Antimony Project

The lease option payment relates to Meryllion's rights under the Makenzie Gold, Silver and Antimony Project, first disclosed on July 15, 2025. The announcement does not provide further details on the project's location, development status, resource estimates, or exploration outcomes.

The project encompasses multiple minerals including gold, silver, and antimony. The option agreement structure allows Meryllion to acquire or expand its interest subject to payment and other terms. The July 2026 payment represents a significant milestone in exercising these rights.

Impact on Share Dilution and Valuation

The deemed issue price of CAD$0.032 per share sets the valuation for this transaction. The announcement does not disclose current share price, trading volumes, market capitalization, or outstanding shares prior to issuance. Investors should consult recent market data and filings to evaluate the issuance relative to current valuations.

Issuing 4,406,250 new shares will increase Meryllion’s outstanding share count. The extent of dilution depends on the existing share structure, which was not provided. Shareholders are advised to review the latest financial statements or SEDAR+ filings to assess dilution effects.

Capital Preservation Strategy

By settling the lease payment via equity issuance, Meryllion conserves CAD$141,000 in cash, a critical consideration for early-stage mineral exploration companies requiring funds for exploration, equipment, permitting, and operations. The company did not disclose current cash or working capital levels.

This approach indicates management’s preference to preserve cash resources amid near-term expenditures. It also reflects confidence that equity issuance is a viable alternative to depleting cash reserves. No guidance on future capital allocation or financing was provided.

Trading Symbols and Market Accessibility

Meryllion Resources trades on the Canadian Securities Exchange under the symbol MYR and on U.S. markets as MYRLF, offering investors access across both Canadian and U.S. exchanges. The CSE is the primary regulatory body for MYR, and its approval is required for the share issuance.

U.S. market access via MYRLF provides additional liquidity, though coordination between Canadian and U.S. regulators may influence timing and disclosure of the issuance.

Forward-Looking Statements and Risk Factors

The company included standard forward-looking statement disclaimers, noting that such statements involve risks and uncertainties and that actual outcomes may differ. Meryllion disclaims any obligation to update these statements except as required by law.

The announcement does not constitute an offer to sell or solicitation to buy securities. Investors should consider all publicly available information before making investment decisions.

Investor Guidance and Next Steps

The key upcoming event is the receipt of CSE regulatory approval for the share issuance. Upon approval, Meryllion will issue the 4,406,250 shares and the hold period will begin. No timeline for approval was provided.

Shareholders should monitor Meryllion’s filings on SEDAR+ and CSE announcements for updates on regulatory status, share issuance completion, and developments related to the Makenzie project. Investor relations contact details were included in the announcement for further inquiries.