Stuhini Exploration Ltd (TSX-V:STU) said it has closed the second tranche of its non-brokered private placement previously announced on December 6, 2022, and upsized on December 15, 2022, for gross proceeds of $474,218.
The total aggregate gross proceeds raised under the first and second tranches of the private placement is $1,380,000.
The net proceeds of the private placement will be used: (i) to fund the company's exploration programs, including its four newly acquired mineral properties in southeast Arizona; (ii) to fund the $300,000 cash option payment due December 31, 2022 (paid) under the option agreement under which the company was granted a right to acquire a 100% interest in its Ruby Creek Property; and (iii) for general, corporate and administrative expenses.
Under the second tranche of the private placement, the company issued a total of 2,061,817 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 January 13, 2025.
READ: Stuhini Exploration says it has elected to renew its option to acquire the Ruby Creek Property in northwestern British Columbia
In connection with the closing of the second tranche, the company paid finders' fees in cash totaling $9,225.76 to Canaccord Genuity, PI Financial, and Red Cloud Securities representing 8% of the gross proceeds from the sale of units placed by the finders, and issued to the finders a total of 40,112 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 January 13, 2025.
An insider of the company purchased or acquired direction and control over a total of 87,000 units under the second tranche of the private placement.
All securities issued under the second tranche are subject to a hold period of four months and one day expiring on May 14, 2023, and the private placement is subject to final approval of the TSXV.
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 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