Stuhini Exploration Completes Acquisition of Ruby Creek Molybdenum Property
Stuhini Exploration Completes Acquisition of
Ruby Creek Molybdenum Property
VANCOUVER, BC
,
June 6, 2023
/CNW/ - Stuhini Exploration Ltd. ("
Stuhini
" or the "
Company
")
(TSXV: STU) (OTCPK: STXPF) is pleased to announce that it has completed the exercise of its
option and now owns a 100% interest in the Ruby Creek project (the "
Ruby Creek Project
" or the
"
Property
") located in northwestern
British Columbia, Canada
.
Pursuant to an option agreement dated
July 29, 2019
, as amended
October 28, 2019
(the "
Option
Agreement
") between the Company and Global Drilling Solutions Inc. ("
Global Drilling
"), Global
Drilling granted the Company an option to acquire a 100% interest in the Property by issuing an
aggregate total of 7,300,000 common shares of the Company ("
Common Shares
") and making
aggregate cash payments of
$1,060,000
to Global Drilling over a four-year term, subject to
acceleration at the sole discretion of the Company, on such terms and conditions provided for in the
Option Agreement (see news releases dated
July 30, 2019
and
November 20, 2019
).
In accordance with the Option Agreement, prior to the date hereof, the Company had issued to
Global Drilling an aggregate total of 5,550,000 Common Shares and has made cash payments to
Global Drilling in an aggregate total amount of
$420,000
. The Board of Directors of the Company
(the "
Board
") has unanimously determined that it is in the best interests of the Company to
accelerate the final option payment (the "
Final Option Payment
") consisting of the issuance of
1,750,000 Common Shares and the payment of
$640,000
to Global Drilling pursuant to the terms of
the Option Agreement. The Company fulfilled the Final Option Payment and exercised its option to
acquire the Property on
June 5, 2023
.
Mr.
Dave O'Brien
, President and Chief Executive Officer of Stuhini stated: "This is a milestone event
for Stuhini given the potential of the Property and the leverage we believe it provides on the
molybdenum space. The Board voted unanimously to complete the exercise of the option for the
Property early in order to attain 100% ownership because we believe that it positions the Company
more favourably to search for a potential suitor or strategic partner. The price of molybdenum,
based on the LME Platts Molybdenum futures prices, has more than doubled since we first optioned
the Property. The Board also considers that the remaining of 26,989 hectares of the Property
outside of the 2,466-hectare lease associated with the molybdenum deposit is prospective for base
and precious metals and provides additional potential value to the Property beyond the molybdenum
resource.
Early Warning Disclosure:
Global Drilling is beneficially owned by
Barry Hanslit
, a co-founder of the Company and the vendor of
the Property. Immediately prior to the Final Option Payment, Mr. Hanslit beneficially owned or
controlled 6,800,000 Common Shares representing approximately 15.2% of the outstanding
Common Shares on an undiluted basis. Immediately after the completion of the Final Option
Payment, Mr. Hanslit beneficially owned or controlled 8,550,000 Common Shares, representing
approximately 18.4% of the outstanding Common Shares on an undiluted basis, representing an
increase in holdings of approximately 3.2%.
Mr. Hanslit has advised the Company that the Common Shares are being held for investment
purposes. Mr. Hanslit 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 the
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. Hanslit considers relevant
from time to time.
A copy of the applicable early warning report will be filed on behalf of Mr. Hanslit on the Company's
profile on SEDAR and may also be obtained by contacting Mr. Hanslit at (604) 639-2278, 8621
Forest Ridge Drive,
Whistler, BC
V8E 0G1.
Ruby Creek Project:
The 29,479-hectare Ruby Creek Project is road accessible and located 14
kilometres (km) east of
Atlin, British Columbia
("
BC
"). There are 48 different documented mineral
occurrences on the Property, of which 16 are gold-related, with 7 significant gold placer creeks. The
Property also hosts the Ruby Creek Molybdenum deposit, which hosts a measured and indicated pit
constrained resource of 433 million lbs molybdenum using
US$15.00
per lb molybdenum prices and
a 0.02% cut-off grade.
1
Stuhini owns 100% of the Ruby Creek Project.
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 south-western
USA
. The Company's portfolio of
exploration properties includes: its flagship, the Ruby Creek Project located approximately 14 km
east of
Atlin, BC
; 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, BC
; and a
portfolio of properties in south-east
Arizona
.
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.
Ehsan Salmabadi, P. Geo. Vice President Exploration, is the Qualified Person for the Company and
has also validated and approved the technical and scientific content of this news release.
Forward-Looking Statements
This news release contains "forward–looking information" within the meaning of Canadian securities
laws, which may include, but are not limited to statements relating to prospects for the Ruby Creek
Project beyond the molybdenum resource. All statements in this release, other than statements of
historical facts, that address events or developments that the Company expects to occur, are
forward-looking statements. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results may differ materially from those in the forward-
looking statements. Factors that could cause the actual results to differ materially from those in
forward-looking statements include regulatory actions, fluctuations in metal and commodity prices,
market prices and exchange rates, failure to obtain permits, and continued availability of capital and
financing, and general economic, market or business conditions. Such forward-looking information
reflects the Company's views with respect to future events and is subject to risks, uncertainties and
assumptions, including those set out in the Company's prospectus. Investors are cautioned that any
such statements are not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements. There can be no assurance
that any forward-looking statements or information will prove to be accurate as actual results and
future events could differ materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking statements or information.
Except as required by applicable securities laws, the Company undertakes no obligation to update
these forward-looking statements in the event that management's beliefs, estimates or opinions, or
other factors, should change.
__________
1
See "Technical Report, Ruby Creek Project, Northern British Columbia, Canada" effective March 10, 2022 and dated April 22, 2022 authored by Steven Ristorcelli, C. P. G., Peter
Ronning, P. Eng., Finley Bakker, P. Geo., and John Eggert, P. Eng.
SOURCE
Stuhini Exploration Ltd.
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For further information:
David O'Brien, President & Chief Executive Officer, Telephone: (604) 835-
4019, Email: [email protected]
CO: Stuhini Exploration Ltd.
CNW 08:30e 06-JUN-23