Stuhini Announces Closing of $308,000 Flow- Through Private Placement
Stuhini Announces Closing of $308,000 Flow-
Through Private Placement
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER
,
Dec. 20, 2019
/CNW/ -
Stuhini Exploration Ltd. (TSX-V STU)
(the "
Company
" or
"
Stuhini
") is pleased to announce the completion of its non
brokered private placement. The
Company issued 1,400,000 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
$0.22
per Flow-
Through Common Share for aggregate gross proceeds to the Company of
Cdn$308,000
(the
"Offering").
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 the Phase I exploration
program of
$250,000
on Stuhini's Ruby Creek Project located in
British Columbia
. The Company will
renounce these expenses to the purchasers with an effective date of no later than
December 31,
2019
.
The Company entered into an option agreement dated
July 29, 2019
to acquire the Ruby Creek
Property (see news release dated
July 30
, 2019). In order to obtain final TSX Venture Exchange
approval, the Ruby Creek option agreement was subject to disinterested shareholder approval
(since obtained) and a financing condition, which has now been satisfied upon closing of this
Offering.
The Flow-Through Common Shares are subject to a hold period that expires on
April 21, 2020
.
David O'Brien
, a director of the Company, acquired 50,000 Flow-Through Common Shares of the
Company under the Offering. The placement to Mr. O'Brien 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(b) and 5.7(1)(b) of MI 61
101 in
respect of related party participation in the Offering.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on the exploration and development of precious
and base metals properties with its focus on the Metla Property located in northwestern
British
Columbia, Canada
, approximately 150 kilometres south of the town of Atlin and the road accessible
Ruby Creek Property located 20 kilometres northeast of
Atlin
.
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 expenditures; 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; and 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/December2019/20/c9628.html
%SEDAR: 00046568E
For further information:
David O'Brien, President & Chief Executive Officer, Telephone: (604) 418-
4019, Email: [email protected]
CO: Stuhini Exploration
CNW 16:00e 20-DEC-19