Brunswick Fuels Lithium Hunt with Tax-Smart Flow-Through Financing

MONTREAL, QC – December 02, 2025 – In the high-stakes world of mineral exploration, securing capital for promising but unproven ground is the perpetual challenge. Brunswick Exploration Inc. (TSX-V: BRW) just provided a masterclass in how it’s done, announcing a non-brokered private placement of up to $1.5 million. This isn't just another financing round; it's a strategically crafted deal designed to tap into Canada's tax code to fuel the hunt for one of the world's most critical metals: lithium.

The proceeds are earmarked for a significant second-phase drill program at the company's Anatacau project in Québec’s prolific Eeyou Istchee-James Bay region. This move follows what the company calls “stellar results” from its initial drilling, signaling that Brunswick believes it may be on to something substantial. For investors and analysts watching the energy transition, this transaction offers a compelling look at the intersection of geology, finance, and public policy driving the next generation of mineral supply.

Unlocking Anatacau's Potential

The decision to double down on Anatacau is rooted in hard data from the project's maiden drill campaign. Exploration is a business of de-risking, and the initial results provided a significant confidence boost. The company reported multiple intercepts of large, spodumene-bearing pegmatites, the host rock for hard-rock lithium deposits.

Among the highlights were truly impressive grades and widths, including one hole, AN-25-05, which returned 1.66% Li2O over a substantial 47.2-meter interval. This was part of a much larger mineralized package spanning over 120 meters. Other holes yielded similar high-grade results, such as 1.53% Li2O over 53.9 meters and 1.58% Li2O over 22.0 meters, all at shallow depths. These are the kinds of numbers that turn heads in the lithium space, suggesting not just the presence of lithium but the potential for an economically viable concentration.

Killian Charles, President & CEO of BRW, noted in the announcement, “After the stellar results from our maiden campaign at Anatacau, we will be returning in early Q1 to begin a 2,500 to 3,000 meters drill program.” The goal of this next phase is clear: to test the scale of the discovery. The mineralization remains open in all directions, and the company controls over 18 kilometers of a prospective geological corridor that bears a striking resemblance to the one hosting Rio Tinto's nearby Galaxy lithium deposit. This new capital will allow Brunswick to aggressively chase the deposit along strike and at depth, moving it from a grassroots discovery toward a defined resource.

The Financial Engine: Flow-Through Shares

Perhaps the most telling aspect of this transaction is how the capital is being raised. Brunswick is utilizing “flow-through shares” (FTS), a uniquely Canadian financial instrument that serves as a powerful incentive for investment in the resource sector. For a junior explorer like Brunswick, which has exploration expenses but no revenue or taxable income, traditional tax deductions are of little immediate use. The FTS mechanism allows the company to pass those deductions on to its investors.

Here’s how it works: Investors purchase the FTS, often at a premium to the market price of common shares. Brunswick then commits to spending those funds on eligible “Canadian exploration expenses.” The company “renounces” these expenses to the subscribers, who can then deduct 100% of their investment against their own income. This provides a powerful, immediate tax shield.

But the incentive has been supercharged. Because lithium is designated a critical mineral, investors in this offering are eligible for the federal government’s 30% Critical Mineral Exploration Tax Credit (CMETC). This credit, combined with the primary deduction and potential provincial incentives, can dramatically lower the net cost and risk for investors. It's a policy tool explicitly designed to de-risk and encourage private capital to flow into the very kind of early-stage exploration that is essential for building out Canada's critical mineral supply chain.

By structuring the deal this way, Brunswick can attract capital more easily and at a more favorable valuation than a conventional equity offering. It’s a symbiotic relationship: investors get a significant tax advantage, and the company gets the non-dilutive funding it needs to drill, without having to surrender its valuable tax assets.

A Global Context for a Local Play

While the drilling will take place in the remote wilds of Québec, the implications of a successful campaign at Anatacau are global. The lithium market, after a period of price volatility and oversupply concerns in 2023 and 2024, is showing signs of tightening. Projections from market intelligence firms like Fastmarkets suggest the market could tip into a deficit as early as 2026. The relentless growth of the electric vehicle market—expected to surpass 25% of all new car sales in 2025—and the expanding deployment of grid-scale battery storage systems create a structural demand for new lithium sources.

This makes new discoveries in stable, Tier-1 jurisdictions like Québec incredibly valuable. The Anatacau project, alongside Brunswick's other assets like the Mirage project, positions the company as a key player in North America's effort to build a secure and resilient battery supply chain, reducing reliance on concentrated foreign sources. The regulatory environment in Québec, particularly in the Eeyou Istchee-James Bay territory, requires rigorous environmental stewardship and deep consultation with Indigenous partners, such as the Cree Nation. Navigating this landscape successfully is paramount and adds another layer of value for projects that secure their social license to operate.

This $1.5 million placement is more than just a line item on a balance sheet. It is a calculated bet on geological potential, enabled by sophisticated financial engineering, and timed to meet a surging global demand. For Brunswick Exploration, the capital is the drill-bit that could unlock a significant new lithium deposit. For the market, it’s a vital sign that the financial ecosystem needed to fuel the energy transition is working as intended.