Helius Minerals Secures C$40M to Tame the Legendary Serra Pelada Mine

VANCOUVER, BC – February 05, 2026 – Helius Minerals Limited (TSXV: HHH) has successfully closed a landmark C$39.9 million private placement, arming the junior exploration company with the capital needed to acquire and reawaken one of the most fabled and formidable mineral deposits in modern history: the Serra Pelada gold and platinum-group metals (PGM) project in Brazil.

The financing represents a critical milestone in Helius's ambitious bid to succeed where others have failed, aiming to transform the site of a chaotic 1980s gold rush into a modern, producing mine. The proceeds are earmarked for the acquisition of a 75% interest in the project from the insolvent Colossus Minerals Inc., setting the stage for a new chapter at a site renowned for both its astonishing geological wealth and its troubled past.

The Anatomy of a High-Stakes Revival

The complex financing, structured and led by sole agent Beacon Securities Limited, was oversubscribed from its initial C$25 million target, signaling strong investor confidence in Helius's strategy. The offering consisted of a combination of 832,150 "Units" and nearly 12.5 million "Subscription Receipts," all priced at C$3.00 per security.

While the structure may seem intricate, it is designed to mitigate risk for all parties. The C$2.5 million raised from the Units will immediately provide Helius with working capital for corporate and professional expenses. However, the vast majority of the funds—a staggering C$36.5 million from the Subscription Receipts—has been placed into escrow.

These funds will only be released to Helius upon the satisfaction of several stringent "Escrow Release Conditions." Chief among these are the finalization of the acquisition agreement with Colossus, securing key regulatory approvals from the TSX Venture Exchange and Brazilian authorities, and successfully negotiating terms with legacy creditors who hold claims against the project's assets. This escrow mechanism ensures that the bulk of the investment is protected until the path to ownership is clear. If Helius cannot satisfy these conditions within a five-month deadline, the funds will be returned to investors.

The deal also includes warrants, giving investors the right to purchase additional shares at C$4.50 for three years, providing further potential upside and future financing for the company. This structure provides Helius with the financial firepower not only to complete the acquisition but also to fund the initial exploration, development, and dewatering activities essential for bringing Serra Pelada back to life.

A Second Chance for a Legendary Mine

The name Serra Pelada, meaning "Naked Mountain," evokes dramatic images of a bygone era. Following a discovery in 1979, the site exploded into the world's largest open-pit gold mine, operated by tens of thousands of artisanal miners, or garimpeiros. In its frenzied peak, an estimated 2 million ounces of gold were extracted from a massive hand-dug pit, creating scenes of human toil likened to an ant colony. Geologically, the deposit is a marvel, with historical drill cores showing spectacular grades of gold, palladium, and platinum.

However, the mine's first chapter ended in 1986 with flooding and a pit wall collapse. In the 2000s, Canadian junior Colossus Minerals attempted to revive the project, investing over C$280 million to build a modern underground operation. The company aimed to tap into the high-grade resource left behind by the garimpeiros, but its ambitions were thwarted just before production was set to begin. In 2014, Colossus declared insolvency after failing to control massive water ingress into the mine, a critical technical failure that Helius's team must now solve.

Helius enters the picture with a clear-eyed view of these historical challenges, led by President and CEO Christian Grainger, who possesses prior professional experience with the Serra Pelada deposit. The company's strategy hinges on a technically sound plan to dewater the mine and a diplomatic approach to untangling the project's complex legacy.

Navigating Brazil's Modern Mining Frontier

Acquiring the asset is only the first step. Helius faces the dual challenge of navigating Brazil's intricate regulatory landscape while building a sustainable and socially responsible operation. The country's current pro-mining administration and a projected USD $64.5 billion in industry investment between 2024 and 2028 create a favorable climate for development.

Recognizing the importance of local partnership, Helius is working closely with Brazilian authorities and stakeholders. The company has reported successful meetings with Brazil's Ministry of Mines (MME) and the National Mining Agency (ANM) to establish a strategic framework for the project's redevelopment.

Crucially, Helius is also partnering with COOMIGASP, the cooperative representing the local garimpeiros who were granted title to the area in 2002. This collaboration is key to ensuring community buy-in and re-establishing a credible social foundation for the project. Helius has also engaged a specialist social-environmental consulting group with previous experience in the Serra Pelada community to facilitate constructive dialogue and ensure the project's benefits are shared. The company's immediate goals include restoring the project to good standing with regulators and restructuring legacy debts to provide a clean slate for future operations.

Favorable Winds in a Bullish Metals Market

Helius's bold move comes at an opportune moment. The global market outlook for both gold and PGMs is exceptionally strong. With some financial institutions forecasting gold to trade at highs of $5,400 per ounce in the coming years, driven by economic uncertainty and a weaker U.S. dollar, the potential rewards for bringing a high-grade deposit like Serra Pelada into production are immense.

Platinum and palladium prices are also projected to see significant upside, adding another layer of value to the polymetallic nature of the deposit. This bullish commodity environment has fueled a surge of investor interest in the junior mining sector, with smaller, agile companies like Helius seen as having significant leverage to rising metal prices.

Brazil itself is a hotbed of exploration activity, prized for its vast, underexplored geological potential. As the world scrambles for critical minerals to fuel the energy transition, Brazil's resource-rich landscape is attracting significant foreign investment. By securing a foothold in one of the country's most famous, high-grade districts, Helius is positioning itself to capitalize on these powerful market trends. The successful financing provides the necessary capital, but the true test will be in the execution of its multi-faceted plan to finally tame the legendary Serra Pelada.