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VANCOUVER, Sept. 18, 2019 /CNW/ - Stuhini Exploration Ltd. (TSX‑V: STU) ("Stuhini" or the "Company") is pleased to announce the completion of its non-brokered private placement ("Private Placement") on September 18, 2019. The Company issued a total of 2,500,000 common shares for gross proceeds of $470,000. Eric Sprott, the Company's new strategic investor, subscribed for 1,000,000 common shares for gross proceeds of $170,000.
The net proceeds of the Private Placement will be used to advance exploration on the Company's Metla Property located in Northwest British Columbia and for general corporate purposes.
The shares issued under the Private Placement are subject to a hold period that expires on January 19, 2020.
Certain directors, officers and other insiders of the Company purchased or acquired direction and control over a total of 250,000 common shares under the Private Placement. The placement to those persons constitutes a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61‑101 ‑Protection of Minority Security Holders in Special Transactions ("MI 61‑101") adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‑101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related parties, exceeded 25% of the Company's market capitalization (as determined under MI 61-101).
No finders' fees or commissions were paid in connection with the Private Placement.
About Stuhini Exploration Ltd.
Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties with its focus on its wholly owned Metla Property located in northwestern British Columbia, Canada, approximately 150 kilometers south of the town of Atlin. Stuhini also has an option agreement on the Ruby Creek Property which is accessible by road located 20 kilometers northeast of Atlin. The Ruby Creek option agreement is subject to both disinterested shareholder approval and approval of the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation. Such forward‑looking statements concern the intended use of proceeds. Such forward‑looking statements are based on a number of assumptions which may prove to be incorrect. Assumptions have been made regarding, among other things: conditions in general economic and financial markets; timing and amount of exploration expenditures; and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward‑looking statements as a result of risk factors including: the availability of funds; the timing and content of work programs; results of exploration activities of mineral properties; the interpretation of drilling results and other geological data; and general market and industry conditions. Forward‑looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward‑looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
SOURCE Stuhini Exploration
For further information: David O'Brien, President & Chief Executive Officer, Telephone: (604) 418-4019, Email: [email protected]