/CNW/ - Stuhini Exploration Ltd. (the " Company " or " Stuhini ")
Stuhini Exploration Ltd. Closes Second
Tranche of Private Placement
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER, BC
,
Jan. 13, 2023
/CNW/ - Stuhini Exploration Ltd. (the "
Company
" or "
Stuhini
")
(TSXV: STU) (OTCPK: STXPF) is pleased to announce that it has closed the second tranche of its
non-brokered private placement (the "
Private Placement
") previously announced on
December 6,
2022
and upsized on
December 15, 2022
for gross proceeds of the second tranche to the Company
of
$474,218
. The total aggregate gross proceeds raised under the first and second tranches of the
Private Placement is
$1,380,000
.
Under the second tranche of the Private Placement, the Company has issued a total of 2,061,817
units of the Company ("
Units
") at a price of
$0.23
per Unit. Each Unit consists of one common share
(each a "
Common Share
") of the Company and one half of one Common Share purchase warrant
(each whole warrant, a "
Warrant
"). Each whole Warrant is exercisable into one Common Share at a
price of
$0.35
per Common Share until
January 13, 2025
.
The net proceeds of the Private Placement will be used: (i) to fund the Company's exploration
programs, including its four newly acquired mineral properties in south east
Arizona
; (ii) to fund the
$300,000
cash option payment due
December 31, 2022
(paid) under the option agreement pursuant
to which the Company was granted a right to acquire a 100% interest in its Ruby Creek Property;
and (iii) for general, corporate and administrative expenses.
In connection with the closing of the second tranche of the Private Placement, the Company paid
finders' fees in cash totaling
$9,225.76
to Canaccord Genuity Corp., PI Financial Corp. and Red
Cloud Securities Inc. (collectively, the "
Finders
"), representing 8% of the gross proceeds from the
sale of Units placed by the Finders, and issued to the Finders a total of 40,112 non-transferable
finder's warrants ("
Finder's Warrants
"), representing 8% of the Units placed by such Finders. Each
Finder's Warrant entitles the holder thereof to acquire one Common Share at a price of
$0.35
per
Common Share until
January 13, 2025
.
An insider of the Company purchased or acquired direction and control over a total of 87,000 Units
under the second tranche of the Private Placement. Such participation is considered to be a "related
party transaction" within the meaning of TSX Venture Exchange ("
TSXV
") Policy 5.9 and Multilateral
Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("
MI 61–101
")
adopted in the Policy. The Company has relied on the exemptions from the formal valuation and
minority shareholder approval requirements of MI 61–101 contained in sections 5.5(a) and 5.7(1)(a)
of MI 61–101 in respect of related party participation in the first tranche of the Private Placement as
neither the fair market value (as determined under MI 61–101) of the subject matter of, nor the fair
market value of the consideration for, the transaction, insofar as it involves related parties, exceeds
25% of the Company's market capitalization (as determined under MI 61–101).
All securities issued pursuant to the second tranche of the Private Placement are subject to a hold
period of four months and one day expiring on
May 14
, 2023. The Private Placement is subject to
final approval of the TSXV.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in
the United States
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "
U.S. Securities Act
") or any state
securities laws and may not be offered or sold within
the United States
or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption from
such registration is available.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on the exploration and development of precious
and base metals properties in western
Canada
and southwestern
USA
. The Company's portfolio of
exploration properties includes: its flagship, the Ruby Creek Property located approximately 20 km
east of
Atlin, British Columbia
; the Que Project located approximately 70 km north of Johnson's
Crossing in the
Yukon
; the South Thompson Project located approximately 35 km northwest of
Grand Rapids, Manitoba
; the Big Ledge Property located approximately 57 km south of
Revelstoke,
British Columbia
; and its new portfolio of 4 properties in southeast
Arizona
.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities
legislation. Such forward–looking statements concern, without limitation, the intended use of
proceeds of the Private Placement. Such forward–looking statements or information are based on a
number of assumptions, any of which may prove to be incorrect. Assumptions have been made
regarding, among other things: conditions in general economic and financial markets; timing and
amount of capital expenditures; favorable weather conditions including but not limited to snow,
rainfall and forest fires, and effects of regulation by governmental agencies. The actual results could
differ materially from those anticipated in these forward–looking statements as a result of risk
factors including, but not limited to: the availability of funds; the timing and content of work programs;
results of exploration activities of mineral properties; the interpretation of drilling results and other
geological data; and general market and industry conditions. Forward–looking statements are based
on the expectations and opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements, although considered reasonable
at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of the date the
statements were made. The Company undertakes no obligation to update or revise any forward-
looking statements included in this news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE
Stuhini Exploration Ltd.
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For further information:
David O'Brien, President & Chief Executive Officer, Stuhini Exploration
Ltd., Email: [email protected], Phone: (604) 835-4019, Web: www.stuhini.com
CO: Stuhini Exploration Ltd.
CNW 19:25e 13-JAN-23