Stuhini Exploration Ltd (TSX-V:STU) announced a new financing round with a big contribution from mining magnate Eric Sprott.
The company revealed a non-brokered private placement of up to 4 million units of the company, at a price of $0.40 per unit, for gross proceeds of up to $1.6 million.
Eric Sprott has agreed to purchase $1 million worth of units under the private placement, according to Vancouver-based Stuhini.
READ: Stuhini Exploration stakes additional land at Ruby Creek project in British Columbia
"We are very pleased with Mr. Sprott's continued support as a key shareholder. His investment is a strong endorsement for the Ruby Creek molybdenum deposit as well as the outlook for molybdenum going forward,” Dave O'Brien, Stuhini’s CEO, said in a statement.
“The price of molybdenum has tripled since the summer of 2021, and we believe the Ruby Creek project is a world class deposit."
Under the terms of the private placement, each unit will consist of one share and one half of one warrant exercisable into one share at a price of $0.50 for a period of two years following the closing.
Net proceeds will be used to fund the final cash payment of $640,000 under the option agreement pursuant to which the company was granted a right to acquire a 100% interest in Ruby Creek, and for general exploration, corporate and administrative expenses.
Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties in western Canada and southwestern US.
Its flagship Ruby Creek property is located approximately 20 kilometres east of Atlin, British Columbia.
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