08:20:21 EDT Thu 28 Mar 2024
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or Name
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Stuhini Exploration Ltd
Symbol STU
Shares Issued 36,356,094
Close 2023-01-13 C$ 0.48
Market Cap C$ 17,450,925
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Stuhini closes $474,218 second tranche of financing

2023-01-13 19:47 ET - News Release

Mr. David O'Brien reports

STUHINI EXPLORATION LTD. CLOSES SECOND TRANCHE OF PRIVATE PLACEMENT

Stuhini Exploration Ltd. has closed the second tranche of its non-brokered private placement, previously announced on Dec. 6, 2022, and upsized on Dec. 15, 2022, for gross proceeds of the second tranche to the company of $474,218. The total aggregate gross proceeds raised under the first and second tranches of the private placement is $1.38-million.

Under the second tranche of the private placement, the company has issued a total of 2,061,817 units of the company at a price of 23 cents 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 35 cents per common share until Jan. 13, 2025.

The net proceeds of the private placement will be used: (i) to finance the company's exploration programs, including its four newly acquired mineral properties in southeast Arizona; (ii) to finance the $300,000 cash option payment due Dec. 31, 2022 (paid), under the option agreement pursuant to which the company was granted a right to acquire a 100-per-cent interest in its Ruby Creek property; and (iii) for general, corporate and administrative expenses.

In connection with the closing of the second tranche of the private placement, the company paid finders' fees in cash totalling $9,225.76 to Canaccord Genuity Corp., PI Financial Corp. and Red Cloud Securities Inc., representing 8 per cent 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 finders' warrants, representing 8 per cent of the units placed by such finders. Each finder's warrant entitles the holder thereof to acquire one common share at a price of 35 cents per common share until Jan. 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. Such participation is considered to be 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, adopted in the policy. The company has relied on the 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 first tranche of the private 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 involves related parties, exceeds 25 per cent of the company's market capitalization (as determined under MI 61-101).

All securities issued pursuant to the second tranche of the private placement are subject to a hold period of four months and one day expiring on May 14, 2023. The private placement is subject to final approval of the TSX Venture Exchange.

About Stuhini Exploration Ltd.

Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties in Western Canada and southwestern United States. The company's portfolio of exploration properties includes: its flagship, the Ruby Creek property, located approximately 20 kilometres east of Atlin, B.C.; the Que project, located approximately 70 kilometres north of Johnson's Crossing in Yukon; the South Thompson project, located approximately 35 kilometres northwest of Grand Rapids, Man.; the Big Ledge property, located approximately 57 kilometres south of Revelstoke, B.C.; and its new portfolio of four properties in southeast Arizona.

We seek Safe Harbor.

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