Stuhini Announces Proposed Sale of Metla Property
Stuhini Announces Proposed Sale of Metla
Property
VANCOUVER, BC
,
Aug. 24, 2020
/CNW/ -
Stuhini Exploration Ltd.
(TSXV: STU) (the "
Company
"
or "
Stuhini
") announces that it has entered into an agreement (the "
Agreement
") for the sale of
100% of its interest in the Metla property located in northwestern
British Columbia
to Brixton Metals
Corporation (TSXV: BBB) ("
Brixton
"). Stuhini will receive in consideration 1,200,000 common
shares of Brixton (the "
Payment Shares
") and
$42,000
in cash. Stuhini is also reserving a 1.0% net
smelter returns royalty interest on the Metla property.
The Payment Shares have a total deemed value of
$432,000
based on the issue price of
$0.36
per
share. It is expected that the Payment Shares will be subject to a four month regulatory hold period
from their issue date.
The Agreement and closing of the sale of the Metla property is subject to TSX Venture Exchange
approval. If the closing has not occurred by December 31, 2020, the Agreement may be terminated
on notice by either Stuhini or Brixton.
Brixton is an arm's length party to the Company and no finder's fees will be payable in connection
with the transaction.
Mr.
David O'Brien President
& CEO of Stuhini stated: "This transaction makes great sense for both
parties. For Stuhini, it allows us to both recoup our exploration expenses incurred thus far at the
Metla Project and to participate in the continued development of the Metla Project and any upside in
Brixton shares. This way Stuhini can concentrate on our more cost–efficient road-accessible
exploration programs at our
Ruby Creek
and Que Projects. For Brixton, this acquisition brings them
closer to their objective of consolidating the entire trend, with their existing camp and airstrip at their
nearby Thorn Project allowing them to advance the Metla Project in a much more cost-effective
manner."
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 Ruby Creek Property located
approximately 24 km east of
Atlin British Columbia
and the Que Project located approximately 70 km
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 sale of the Metla property and the share
and cash consideration and royalty to be received. 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,
receipt of any and all necessary regulatory, governmental and corporate approvals, and Brixton's
financial condition. 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 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 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/August2020/24/c3199.html
%SEDAR: 00046568E
For further information:
David O'Brien, President & Chief Executive Officer, Telephone: (604) 418-
4019, Email: [email protected]
CO: Stuhini Exploration
CNW 09:35e 24-AUG-20