Stuhini Announces Closing of $1.35 Million Private Placement
Stuhini Announces Closing of $1.35 Million
Private Placement
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
./
VANCOUVER, BC
,
Aug. 14, 2020
/CNW/ -
Stuhini Exploration Ltd. (TSX-V: STU)
(the "
Company
" or "
Stuhini
") is pleased to announce the completion of its non–brokered private
placement announced
July 28, 2020
. The Company issued 1,000,000 common shares that qualify as
"flow-through shares" for the purposes of the Income Tax Act (
Canada
) ("
Flow-Through Common
Shares
") at a price of
$0.55
per Flow-Through Common Share and 2,000,000 common shares
("
Common Shares
") at a price of
$0.40
per Common Share for aggregate gross proceeds to the
Company of
$1,350,000
(the "
Offering
").
The proceeds from the sale of Common Shares are intended to be used for exploration programs on
the Company's
Ruby Creek
and Metla Properties located in
Northwest British Columbia
, the Que
Property located in Southcentral Yukon Territory and for general working capital purposes.
The
gross proceeds from the sale of the Flow-Through Common Shares will be used to incur "Canadian
exploration expenses" which qualify as "flow-through mining expenditures" (within the meaning of the
Income Tax Act (
Canada
)) ("
Qualifying Expenditures
") to fund exploration programs on Stuhini's
Ruby Creek
and Metla Projects located in
British Columbia
. The Company will renounce these
expenses to the purchasers of Flow-Through Common Shares with an effective date of no later than
December 31
, 2020. The Flow-Through Common Shares
and the Common Shares are subject to a
hold period that expires on
December 15, 2020
.
Mr.
Eric Sprott
through 2176423 Ontario Ltd., a corporation that is beneficially owned by him,
acquired 1,000,000 Common Shares in the Offering for total consideration of
$400,000
. Prior to the
closing of the Offering, Mr. Sprott beneficially owned or controlled 1,300,000 Common Shares of the
Company. Subsequent to the Offering, Mr. Sprott beneficially owns and controls 2,300,000
common shares of the Company representing approximately 12.53% of the outstanding Common
Shares of Stuhini.
Mr. Sprott has advised the Company that the Shares were acquired for investment purposes. Mr.
Sprott has a long-term view of the investment and may acquire additional securities of the Company
including on the open market or through private acquisitions or sell securities of Company including
on the open market or through private dispositions in the future depending on market conditions,
reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time.
A copy of the applicable early warning report will appear on the Company's profile on SEDAR and
may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600,
Royal Bank Plaza, South Tower, Toronto,
Ontario
M5J 2J1).
Mr.
David O'Brien President
& CEO of Stuhini stated: "We very much appreciate the strong support
from Mr. Sprott and his continued commitment to the Company as we move forward with exploration
of our suite of mineral properties in
British Columbia
and the
Yukon
."
Certain directors, officers and other insiders of the Company purchased or acquired direction and
control over a total of 50,000 Common Shares and 282,000 Flow-Through Common Shares under
the Private Placement. The placement to those persons constitutes a "related party transaction"
within the meaning of TSX Venture Exchange 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 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 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 involved the related parties, exceeded 25% of the Company's
market capitalization (as determined under MI 61-101).
No finders' fees or commissions were paid in connection with the Private Placement.
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
with its focus on the Metla Property located in
northwestern
British Columbia
approximately 150 kilometres south of the town of
Atlin
, the Ruby
Creek Property located approximately 24 km east of
Atlin British Columbia
and the Que Project
located approximately 70km north of Johnsons Crossing in the
Yukon Territory
.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities
legislation. Such forward–looking statements concern the intended use of proceeds and the
renunciation of Qualifying Expenditures. Such forward–looking statements or information are
based on a number of assumptions 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 expenditure
s;
timing and amount of Qualifying Expenditures incurred;
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: 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; general market
and industry conditions; an
d
failure to incur Qualifying Expenditures.
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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
SOURCE
Stuhini Exploration
View original content:
http://www.newswire.ca/en/releases/archive/August2020/14/c8178.html
%SEDAR: 00046568E
For further information:
David O'Brien, President & Chief Executive Officer, Telephone: (604) 418-
4019, Email: [email protected]
CO: Stuhini Exploration
CNW 13:22e 14-AUG-20