Sitka Gold Corp. Closes Oversubscribed $4.69 Million Private Placement, With Participation by Sprott Asset Management LP
NEWS RELEASE
June 8, 2022
NR 22-16
www.sitkagoldcorp.com
Sitka Gold Corp. Closes Oversubscribed $4.69 Million Private
Placement, With Participation by Sprott Asset Management LP
VANCOUVER, CANADA – June 8, 2022: Sitka Gold Corp. (“Sitka” or the “Company”) (CSE:SIG)
(FSE:1RF) (OTCQB:SITKF) is pleased to announce that it has closed its previously announced non -
brokered private placement for total gross proceeds of approximately $4,686,560 (the “ Offering”)
through the issuance of 20,489,177 flow-through units (the “FT Units”) at a price of $0.17 per FT Unit
and 8,595,716 non-flow-through units (the “NFT Units”) at a price of $0.14 per NFT Unit.
Each NFT Unit is comprised of one common share (a “Common Share”) in the capital of the Company
and one -half of one Common Share purchase warrant (each whole warrant, a “ Warrant”). Each
Warrant entitles the holder to purchase an additional Common Share at a price of $0.23 for a period of
24 months from the date of issuance. Each FT Unit is comprised of one flow-through common share in
the capital of the Company and one-half of one Warrant.
The Offering consisted of a lead order of $2 million from funds managed by Sprott Asset Management
LP (“Sprott”). Sprott is a global asset manager that provides clients with access to differentiated
precious metals and real assets investment strategies , and has partnered with natural resource
companies to help meet their capital needs through brokerage and resource lending activities.
The Offering, as announced in the Company’s news releases dated May 24, 2022 and May 26, 2022,
was oversubscribed by approximately $436,560. The Company intends to use the net proceeds of the
Offering for exploration work on its Yukon gold properties and for general working capital.
“The impressive investor demand in response to this financing, during what is considered to be qu ite
difficult market conditions, is a testament to the upside potential Sitka Gold currently provides,”
commented Cor Coe, CEO and director of Sitka. “With the significant boost this financing brings to our
treasury, we are well positioned to materially ad vance our ongoing projects. The main focus this year
will be on aggressive development of our new Blackjack Zone gold discovery at the RC Gold Project in
the Yukon, where we are currently conducting a planned 10,000 metre diamond drill program with the
goal of advancing this exceptional discovery toward an initial resource estimate. We are very pleased
to welcome new shareholders to Sitka and would like to thank everyone who participated in the
financing. These are exciting times for Sitka and we look forward to a very active year as we continue
our push to unlock value from our portfolio of attractive mineral assets.”
In connection with the Offering, the Company issued 1,560,645 finder’s warrants (the “ Finder’s
Warrants”) and paid commissions of $254,130.60 to certain finders. Each Finder’s Warrant is subject
to the same terms and conditions as the Warrants.
Canaccord Genuity Corp. acted as financial advisor to the Company in connection with the Offering. In
consideration for such services, the Company has agreed to issue to Canaccord Genuity Corp. an
aggregate of 108,696 Shares (the “Advisory Shares”) at an issue price of $0.23 per Advisory Share.
Certain insiders of the Company purchased an aggregate of 11,975,000 FT Units under the Offering,
constituting, to that extent, a “related party transaction” as defined under Multilateral Instrument 61-101
(“MI 61 -101”). The Company has relied on the exemptions from the formal valuation and minority
shareholder approval requirements of MI 61 -101, as neither the fair market value of the securities
distributed in the Offering nor the consideration received for those securities, in so far as the Offering
involves the insiders, exceeds 25% of the Company’s market capitalization.
About Sitka Gold Corp.
Sitka Gold Corp. is a well -funded mineral exploration company headquartered in Canada. The
Company is managed by a team of experienced industry professionals and is focused on exploring for
economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral
properties of merit. Sitka currently has an option to acquire a 100% interest in the RC, Barney Ridge,
Clear Creek and OGI properties in the Yukon and the Burro Creek Gold property in Arizona. Sitka owns
a 100% interest in its Alpha Gold property in Nevada, its Mahtin Gold property in the Yukon and its
Coppermine River project in Nunavut.
Sitka is currently conducting a planned 10,000 metre diamond drill prog ram at its RC Gold Project in
the Yukon where the last hole drilled in 2021 (Hole 21) resulted in the discovery of a new gold zone
(the Blackjack zone) and returned 220.1 metres averaging 1.17 g/t gold from surface including 50.5
metres of 2.08 g/t gold (see news release dated February 17, 2022). A drill rig and contractor has also
been secured to complete up to 5,000 feet of drilling its Alpha Gold Property in Nevada where drilling
is anticipated to begin in Q2 of 2022.
Upcoming Events
Sitka Gold will be attending the following events:
● PDAC 2022 - Toronto, Ontario: June 13th - 15th, 2022
○ Booth #2346
● Invest Yukon Conference, Dawson City, Yukon: June 21st - 23rd, 2022
The scientific and technical content of this news release has been reviewed and approved by Cor Coe,
P.Geo., Director and CEO of the Company, and a Qualified Person (QP) as defined by National
Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
“Donald Penner”
President and Director
For more information contact:
Donald Penner
President & Director
778-212-1950
or
Cor Coe
CEO & Director
604-817-4753
Cautionary and Forward-Looking Statements
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This release includes certain statements and information that may constitute forward -looking
information within the meaning of applicable Canadian securities laws. Forward -looking statements
relate to future events or future performance and reflect the expectations or beliefs of management of
the Company regarding future events. Generally, forward -looking statements and information can be
identified by the use of forward -looking terminology such as “intends” or “anticipates”, or variations of
such words and phrases or statements that certain actions, events or results “may”, “could”, “should”,
“would” or “occur”. This information and these statements, referred to herein as "forward ‐looking
statements", are not historical facts, are made as of the date of thi s news release and include without
limitation, statements regarding discussions of future plans, estimates and forecasts and statements
as to management's expectations and intentions with respect to, among other things, the use of the
proceeds raised under the Offering and the anticipated work program.
In making the forward -looking statements in this news release, the Company has applied several
material assumptions, including without limitation, that the Company will complete the anticipated work
program and use the proceeds of the Offering as currently anticipated.
These forward‐looking statements involve numerous risks and uncertainties and actual results might
differ materially from results suggested in any forward -looking statements. These risks and
uncertainties include, among other things, market uncertainty , the results of the anticipated work
program and that the Company will not use the proceeds of the Offering as currently anticipated.
Although management of the Company has attempted to identi fy important factors that could cause
actual results to differ materially from those contained in forward-looking statements or forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward -looking statements and forward -looking information.
Readers are cautioned that reliance on such information may not be appropriate for other purposes.
The Company does not undertake to update any forward -looking statement, forward -looking
information or financial out-look that are incorporated by reference herein, except in accordance with
applicable securities laws. We seek safe harbor.