Stuhini Welcomes Sprott as Strategic Investor
Stuhini Welcomes Sprott as Strategic Investor
/NOT FOR DISTRIBUTION TO
UNITED STATES
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./
Stuhini Announces
$470,000
Private Placement
VANCOUVER
,
Aug. 16, 2019
/CNW/ -
Stuhini Exploration Ltd. (TSX-V STU)
(the "
Company
" or
"
Stuhini
") is pleased to announce a non-brokered private placement of up to 2,500,000 common
shares in the capital of the Company ("
Shares
"). The Offering will consist of 1,000,000 Shares at a
price of
$0.17
per share to Mr.
Eric Sprott
, a strategic investor. The balance of the Offering,
consisting of up to 1,500,000 Shares, will be offered to all other investors, including insiders of the
Company, at a price of
$0.20
per Share.
Aggregate gross proceeds of the Offering of up to
$470,000
will be used by the Company to fund
exploration and development activities at both the Metla Creek Property and the Ruby Creek
Property (under option subject to regulatory and shareholder approval), and general administration
and corporate purposes. There are no finders fees or commissions payable in relation to this
Offering.
David O'Brien
, President and Chief Executive Officer of Stuhini, commented: "
On behalf of the
Board of Directors, I would like to take this opportunity to welcome Mr.
Eric Sprott
, as an important
new strategic shareholder. Through this relationship, Stuhini gains a depth of knowledge and we
look forward to working with his team to realize upon the full potential of this relationship."
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 with its focus on the Metla Property located in northwestern
British
Columbia, Canada
, approximately 150 kilometres south of the town of Atlin and the road accessible
Ruby Creek Property located 20 kilometers northeast of
Atlin
.
The securities referred to in this news release have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "
U.S. Securities Act
"), or any applicable
securities laws of any state of
the United States
, and may not be offered or sold within
the United
States
or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S
under the U.S. Securities Act) or persons in
the United States
unless registered under the
U.S. Securities Act and any other applicable securities laws of
the United States
or an exemption
from such registration requirements is available. This news release does not constitute an offer to
sell or a solicitation of an offer to buy any of these securities within any jurisdiction, including
the
United States
.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of Canadian securities
legislation. Such forward
looking statements concern expected subscriptions and closing of the
Offering, net proceeds from the Offering, the intended use of proceeds. 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; 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; 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 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 news release.
SOURCE
Stuhini Exploration
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For further information:
David O'Brien, President & Chief Executive Officer, Telephone: (604) 418-
4019, Email: [email protected]
CO: Stuhini Exploration
CNW 09:20e 16-AUG-19