Stuhini Exploration Ltd. Closes First Tranche of Private Placement
Stuhini Exploration Ltd. Closes First Tranche
of Private Placement
VANCOUVER, BC
,
Aug. 4, 2022
/CNW/ - Stuhini Exploration Ltd. (the "
Company
" or "
Stuhini
")
(TSXV: STU) and (OTCPK: STXPF) is pleased to announce that it has closed the first tranche of its
non-brokered private placement (the "
Private Placement
") previously announced on
August 2, 2022
for aggregate gross proceeds to the Company of
$1,026,125
.
Under the first tranche of the Private Placement, the Company has issued a total of 2,142,500 flow-
through units of the Company ("
FT Units
") at a price of
$0.45
per FT Unit (the "
FT Unit Offering
")
for total gross proceeds to the Company of
$964,125
. Each FT Unit consists of one (1) flow-through
common share of the Company and one half (1/2) of one common share purchase warrant (each
whole warrant, an "
FT Warrant
"). The FT Units will qualify as "flow-through shares" for the purposes
of the
Income Tax Act
(
Canada
) (the "
Tax Act
"). Each FT Warrant will entitle the holder thereof to
acquire one common share in the capital of the Company (each, a "
Common Share
") at a price of
$0.60
per Common Share for a period of two years from the date of issuance.
The aggregate gross proceeds from the FT Unit Offering will be used to incur "Canadian exploration
expenses" which qualify as "flow-through mining expenditures" (within the meaning of the Tax Act)
("
Qualifying Expenditures
") in order to fund exploration programs on Stuhini's Ruby Creek Project
and Big Ledge Project which are located in
British Columbia
. The Company will renounce these
expenses to the purchasers with an effective date of not later than
December 31, 2022
.
The Company also issued a total of 155,000 non-flow through units of the Company ("
NFT Units
")
at a price of
$0.40
per NFT Unit (the "
NFT Unit Offering
") for total gross proceeds to the Company
of
$62,000
. Each NFT Unit consists of one Common Share and one-half of one common share
purchase warrant (each whole warrant, an "
NFT Warrant
"). Each NFT Warrant will entitle the holder
thereof to acquire one Common Share at a price of
$0.60
per Common Share for a period of two
years from the date of issuance.
The aggregate gross proceeds from the NFT Unit Offering will be used to fund exploration programs
on the Company's other mineral properties, including the Que Project in the
Yukon Territory
, the
South Thompson Nickel project in
Manitoba
, and any additional exploration projects acquired or
staked in
the United States
through the Company's wholly owned subsidiary, Arizada Metals Corp,
as well as general and administrative expenses.
In connection with the closing of the first tranche of the Private Placement, the Company paid
finders' fees of
$43
,200 to Mine Equities Ltd. ("
Mine Equities
") representing 6% of the proceeds
raised from the sale of FT Units placed by Mine Equities.
A certain insider of the Company purchased a total of 60,000 NFT Units under the first tranche of the
Private Placement. The issuance of securities to such person is considered to be a "related party
transaction" within the meaning of TSX Venture Exchange ("
TSXV
") 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 Private Placement 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).
Closing of the second tranche of the Private Placement is expected to occur on or before
August
19th, 2022
, and is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSXV. All securities issued pursuant to the first
tranche of the Private Placement are subject to a hold period of four months and one day expiring on
December 5, 2022
.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on the exploration and development of it's base and
precious metal properties. The Company's portfolio of exploration properties includes: its flagship,
the Ruby Creek Property, located approximately 20 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
.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities
legislation. Such forward
looking statements concern, without limitation, the intended use of
proceeds of the Private Placement 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, but not limited to: 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 Ltd.
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For further information:
David O'Brien, President & Chief Executive Officer, Stuhini Exploration
Ltd., Email: [email protected], Phone: (604) 835-4019, Web: www.stuhini.com
CO: Stuhini Exploration Ltd.
CNW 17:24e 04-AUG-22