Stuhini Exploration Ltd (TSX-V:STU) said it has closed the first tranche of its previously-announced non-brokered private placement, raising total gross proceeds of $1,026,125.
The base and precious metals explorer said under the first tranche of the private placement, it issued a total of 2,142,500 flow-through (FT) units at a price of $0.45 each for total gross proceeds of $964,125, as well as a total of 155,000 non-flow-through (NFT) units at a price of $0.40 per NFT unit for total gross proceeds of $62,000.
Gross proceeds from the FT unit offering will be used to fund exploration programs on Stuhini's Ruby Creek project and Big Ledge project located in British Columbia, while those raised from the NFT offering will be used to fund exploration programs on the company's other mineral properties, including the Que project in the Yukon Territory, the South Thompson Nickel project in Manitoba, and any additional exploration projects acquired or staked in the United States through the company's wholly-owned subsidiary, Arizada Metals Corp, as well as for general and administrative expenses.
READ: Stuhini Exploration to raise up to C$1.5M in private placement financing; Sprott Asset Management agrees to take lead order
Stuhini said each FT unit consists of one flow-through common share of the company and one-half of one common share purchase warrant, while each NFT unit consists of one common share and one-half of one common share purchase warrant.
Holders of both the FT and NFT warrants are entitled to acquire one common share of the company at a price of $0.60 each for a period of two years from the date of issuance, it added.
In connection with the closing of the first tranche of the private placement, the company said it paid finders' fees of $43,200 to Mine Equities Ltd, representing 6% of the proceeds raised from the sale of the FT units placed by Mine Equities.
“A certain insider of the company” purchased a total of 60,000 NFT units, it said, adding that the deal is considered a "related party transaction" under TSX Venture Exchange (TSXV) rules.
All securities issued under the first tranche of the private placement are subject to a hold period of four months and one day expiring on December 5, 2022.
Stuhini expects the second tranche of the private placement to close on or before August 19, 2022, subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSXV.
Contact the author at jon.hopkins@proactiveinvestors.com