Stuhini Exploration Completes Second Anniversary Option Commitment on Ruby Creek Project
Stuhini Exploration Completes Second
Anniversary Option Commitment on Ruby
Creek Project
VANCOUVER, BC
,
Dec. 29, 2021
/CNW/ - Stuhini Exploration Ltd. ("
Stuhini
" or the "
Company
")
(TSXV: STU) is pleased to announce that pursuant to its Option Agreement (the "
Agreement
") with
Global Drilling Solutions Inc. ("
Global Drilling
") to acquire 100% of the Ruby Creek Property (the
"
Property
" or the "
Project
") in northwestern
British Columbia, Canada
("
BC
"), the Company has
elected to renew its option on the Property (the "
Option
").
Pursuant to the Agreement, Stuhini can earn a 100% interest in the Property by issuing up to
7,300,000 common shares of the Company ("
Common Shares
") and making cash payments of up
to
$1,060,000
over a four-year term. See news releases dated
July 30, 2019
and
November 20,
2019
. Following shareholder and TSX Venture Exchange approval of the Agreement the Company
issued 800,000 Common Shares to Global Drilling on
December 30, 2019
, and on unanimous
approval of the board of directors of the Company (the "
Board
") exercised its First Anniversary
Option Commitment on
December 30, 2020
, which was the issuance of 1,250,000 Common Shares
to Global Drilling.
Based on what the Board considers to be favourable geological results (See news releases dated
Jan 12
th
,
Mar 18
th
,
Apr 6
th
,
May 5
th
Jul 27
th
, and
Oct 13
th
, 2021) and the presence of the historic
Adanac Molybdenum deposit within the tenures, as well as the steady increase in molybdenum
prices over the past 17 months (See news release dated
Nov 9, 2021
), the Board unanimously
voted in favour of proceeding with the Second Anniversary Option Commitment. The Second
Anniversary Option Commitment consists of 1,750,000 Common Shares and a
$120,000
cash
payment. There are no work commitments required as part of this Agreement. The balance of the
share issuances and the cash payments are all at the Company's election should it wish to maintain
the Option after each anniversary date of the Option term. Global Drilling has agreed to accept an
unsecured promissory note in the amount of
$120,000
non-interest bearing six month term loan in
lieu of the cash payment.
Global Drilling is beneficially owned by
Barry Hanslit
, a co-founder of the Company and the vendor of
the Property. Prior to this Second Anniversary share issuance, Mr. Hanslit beneficially owned or
controlled 3,300,000 Common Shares representing an undiluted (3,300,000/24,222,776) 13.6 % of
the outstanding Common Shares. Subsequent to this Second Anniversary 1,750,000 share issuance,
Mr. Hanslit beneficially owns or controls 5,050,000 Common Shares (5,050,000/25,972,776)
representing approximately 19.4% of the outstanding Common Shares on an undiluted basis, an
increase of 2.7% of Mr. Hanslit's previously reported shareholding percentage of 16.7%
Mr. Hanslit has advised the Company that the Common Shares were acquired 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) 932-1211, 8621
Forest Ridge Drive, Whislter, BC V8E 0G1.
Ruby Creek Project:
The 28,631-hectare Ruby Creek Project is road accessible and located 14
kilometres (km) east of
Atlin, 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 historic Ruby Creek Molybdenum resource, which has an intact BC Mines Act permit. Stuhini has
an Option to acquire 100% of the Ruby Creek Project subject to a 1% Net Smelter Royalty.
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
. The Company's portfolio of exploration properties
includes its flagship Ruby Creek Property 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
and the Big Ledge
Property located approximately 57 km south of
Revelstoke, BC
.
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.
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 the Option and the exercise of
the Option. 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, failure to obtain
permits, and continued availability of capital and financing, and general economic, market or
business conditions. In particular, there is no guarantee that exploration work, as proposed, or
otherwise, will be completed on the Property or that the Option will be exercised. 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.
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 09:00e 29-DEC-21