Stuhini Exploration Ltd (TSX-V:STU) has announced plans to raise up to $644,000 through a non-brokered private placement to fund exploration at its newly acquired Arizona properties.
The company is offering up to 2.8 million units at a price of $0.23 per unit.
Mining magnate Eric Sprott has agreed to purchase $100,000 of units under the private placement, Stuhini said in a statement.
READ: Stuhini Exploration reveals positive exploration update on its Ruby Creek project in BC and new projects in Arizona
The Vancouver-based explorer said that part of the proceeds will be used to fund the $300,000 cash option payment due December 31, 2022, under the option agreement under which the company was granted a right to acquire a 100% interest in its Ruby Creek property. Additional funds will go towards general, corporate and administrative expenses.
Under the terms of the placement, each unit will consist of one common share and one-half of one warrant, exercisable into one share at a price of $0.35 for a period of two years following closing.
Stuhini said it may pay finders' fees in cash of up to 8% of the gross proceeds from the sale of units placed by the finder and issue finder's warrants entitling the finder to purchase such number of common shares that is equal to up to 8% of the number of units placed by the finder at the same terms as outlined above.
Stuhini’s portfolio of properties includes its flagship Ruby Creek property, which is located approximately 20 kilometres (km) east of Atlin, British Columbia; 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, British Columbia, as well as its new portfolio of properties in south-east Arizona.
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