Stuhini Exploration Ltd. (TSX-V:STU) has announced the completion of its non–brokered private placement, previously announced on June 17, 2021, raising aggregate gross proceeds for the company of $2.3 million.
The company said it issued 2,000,000 common shares that qualify as Flow-Through shares for the purposes of the Income Tax Act (Canada) at a price of $0.65 each and 2,000,000 common shares at a price of $0.50 each.
In a statement, Stuhini Exploration president and CEO Dave O'Brien commented: "We would like to thank existing shareholders for their continued support while at the same time welcome all the new shareholders who participated in the offering. The completion of this financing puts the Company in a strong position to both continue it's aggressive exploration program at it's Ruby Creek Project and to potentially update the historic Adanac Molybdenum resource contained within the Ruby Creek tenures."
The proceeds from the sale of the common shares are intended to be used for exploration programs on the company's Ruby Creek Property located in Northwest British Columbia, the Que Property located in Southcentral Yukon Territory, the South Thompson Nickle Project in Manitoba and for general working capital purposes.
The gross proceeds from the sale of the Flow-Through common shares will be used to incur "Canadian exploration expenses" which qualify as "flow-through mining expenditures" (within the meaning of the Income Tax Act (Canada)) to fund exploration programs on Stuhini's Ruby Creek Project. The company will renounce these expenses to the purchasers of Flow-Through common shares with an effective date of no later than December 31, 2021.
The Flow-Through common shares and the common shares are subject to a hold period that expires on November 24, 2021. The offering is subject to the final approval of the TSX Venture Exchange.
Investor Eric Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 500,000 common shares in the offering for total consideration of $250,000. Prior to the closing of the offering, Sprott beneficially owned or controlled 2,300,000 common shares of the company. Subsequent to the offering, Sprott beneficially owns and controls 2,800,000 common shares of the company representing approximately 11.61% of the outstanding common shares of Stuhini.
Finder's fees of 6% cash were paid to certain eligible finders as follows: $28,094.97 to Canaccord Genuity (TSX:CF, LSE:CF) Corp. and $900.00 to Haywood Securities Inc.
Stuhini is a mineral exploration company focused on the exploration and development of precious and base metal properties in western Canada, with its focus on the Ruby Creek Property located approximately 20 kilometres (km) east of Atlin, British Colmbia; the South Thompson Project located approximately 35 km northwest of Grand Rapids, Manitoba; and the Que Property located approximately 70 km north of Johnson's Crossing in the Yukon.
Contact the author at jon.hopkins@proactiveinvestors.com