Stuhini Exploration Ltd. Announces $1,350,000 Private Placement
Stuhini Exploration Ltd. Announces $1,350,000
Private Placement
VANCOUVER, BC
,
July 28, 2020
/CNW/ - Stuhini Exploration Ltd. (the "
Company
" or "
Stuhini
")
(TSX-V: STU) is pleased to announce a
$1,350,000
non–brokered private placement comprising the
following:
1
.
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 for aggregate gross proceeds to the Company of
Cdn$550,000
(the "Flow
Through Offering").
2
.
2,000,000 non flow-through shares ("Non-FT Common Shares") at a price of
$0.40
per share
for aggregate gross proceeds of
Cdn$800,000
(the "Non-FT Offering").
The Flow Through Offering and Non-FT Offering (collectively, the "Offering") will provide aggregate
gross proceeds to the Company of
Cdn$1,350,000
.
Aggregate gross proceeds of up to
$550,000
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 which are both located in
British Columbia
. The Company will renounce these expenses to the purchasers with an effective
date of not later than
December 31, 2020
.
Aggregate gross proceeds of up to
$800,000
from the sale of Non-FT Common Shares will be used
to fund exploration programs on the Company's mineral properties, including the Que Project in the
Yukon Territory
, as well as general and administrative expenses.
Finder's fees of up to 6% cash may be payable in connection with the Offering.
It is anticipated that certain directors, officers and other insiders of the Company will acquire Shares
under the Offering. Such participation will be considered to be "related party transactions" 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
intends to rely on the 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 Offering 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 involves interested parties, is expected to exceed 25% of the Company's market
capitalization (as determined under MI 61–101).
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary
approvals including the approval of the TSX Venture Exchange. The Common Shares to be issued
under the Offering will have a hold period of four months and one day from the Closing.
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 kilometers 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 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 the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE
Stuhini Exploration
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http://www.newswire.ca/en/releases/archive/July2020/28/c8592.html
%SEDAR: 00046568E
For further information:
David O'Brien, President & Chief Executive Officer, Stuhini Exploration
Ltd., Email: [email protected], Phone: (604) 418-4019, Web: www.stuhini.com
CO: Stuhini Exploration
CNW 09:25e 28-JUL-20