Stuhini Exploration Ltd (TSX-V:STU) said it has closed the first tranche of its non-brokered private placement previously announced on December 6, 2022, and upsized on December 15, 2022, for aggregate gross proceeds of $905,782.09.
Under the first tranche, the company has issued a total of 3,938,183 units at a price of $0.23 per unit. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.35 each until December 20, 2024.
The net proceeds of the private placement will be used to fund the company's exploration programs, including its four newly acquired mineral properties in southeast Arizona; to fund the $300,000 cash option payment due December 31, 2022, under the option agreement pursuant to which the company was granted a right to acquire a 100% interest in its Ruby Creek Property; and for general, corporate and administrative expenses.
READ: Stuhini Exploration reveals positive exploration update on its Ruby Creek project in BC and new projects in Arizona
In connection with the closing of the first tranche of the private placement, the company paid finders' fees in cash totaling $7,360 to Canaccord Genuity Corp and Haywood Securities Inc, representing 8% of the gross proceeds from the sale of units placed by the finders and issued to them a total of 32,000 non-transferable finder's warrants, also representing 8% of the units placed by such finders. Each finder's warrant entitles the holder to acquire one common share at a price of $0.35 each until December 20, 2024.
An insider of the company purchased or acquired direction and control over a total of 225,000 units under the first tranche of the private placement.
Closing of the second tranche of the private placement is expected to occur on or before January 20, 2023, 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 under the first tranche of the private placement are subject to a hold period of four months and one day expiring on April 21, 2023.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties in western Canada and the southwestern USA.
The company's portfolio of exploration properties includes its flagship, the Ruby Creek Property 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; the Big Ledge Property located approximately 57 km south of Revelstoke, British Columbia; and its new portfolio of four properties in southeast Arizona.
Contact the author at jon.hopkins@proactiveinvestors.com