Stuhini Renews Option on Ruby Creek VANCOUVER, BC, Dec. 31, 2020 /CNW/ - Stuhini Exploration Ltd. ("Stuhini" or the "Company") (TSXV: STU) is pleased to announce that, pursuant to its Option Agreement (the "Agreement") with Global Drilling Solutions Inc. ("Global Drilling") to acquire 100% of the Ruby Creek Property (the "Property" or the "Project") in northwestern British Columbia, Canada, the Company has elected to renew its option on the Property (the "Option").
Pursuant to the Agreement, Stuhini can earn a 100% interest in the Property by issuing 7,300,000 common shares of the Company ("Common Shares") and making cash payments totalling $1,060,000 over a four-year term. More information on the Agreement can be found in the Company's news releases dated July 30, 2019 and November 20, 2019. Upon obtaining TSX Venture Exchange approval of the Agreement on December 30, 2019, the Company issued 800,000 Common Shares at a deemed issued price of $0.31 per share (the "Initial Shares") to Global Drilling for the first required option payment under the Agreement on that date. The balance of the Common Share issuances and the cash payments under the Agreement are all at the Company's election should it wish to maintain the Option on each December 30th anniversary during the option term and no minimum work commitments or expenditures on the Property are required for Option exercise.
Based on what the Board of Directors of the Company (the "Board") believed were favourable geological results (see news releases dated June 29, 2020 and November 18, 2020) and the presence of the historic Adanac Molybdenum deposit within the tenures, the Board unanimously voted in favour of proceeding with the first anniversary option payment under the Agreement with the treasury issuance of 1,250,000 Common Shares at a deemed issue price of $0.41 per share (the "1st Anniversary Shares") to Global Drilling on December 30, 2020. The 1st Anniversary Shares are subject to a hold period that will expire on May 1, 2021.
Global Drilling is beneficially owned by Barry Hanslit, a co-founder of the Company. Prior to the acquisition of the Initial Shares under the Agreement, Mr. Hanslit beneficially owned 1,250,000 Common Shares representing 8.9% of the then outstanding Common Shares and, with such acquisition, his beneficial ownership of 2,050,000 Common Shares increased by 5.6% to 14.5% of the then outstanding Common Shares. Prior to the acquisition of the 1st Anniversary Shares under the Agreement, Mr. Hanslit continued to beneficially own 2,050,000 Common Shares representing 11.1% of the then outstanding Common Shares and, with the further acquisition, his beneficial ownership of 3,300,000 Common Shares increased by 2.2% to 16.7% of the current outstanding Common Shares.
Mr. Hanslit has advised the Company that the Common Shares were acquired for investment purposes. Mr. Hanslit has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Hanslit considers relevant from time to time.
A copy of the applicable early warning report will be filed on the Company's profile on SEDAR and may also be obtained by contacting Mr. Hanslit at (604) 932-1211, 8621 Forest Ridge Drive, Whistler, BC V8E 0G1.
Ruby Creek Project: The 27,354-hectare Ruby Creek Project is road accessible and located 20 kilometres (km) east of Atlin, BC. There are 48 different documented mineral occurrences on the Property, of which 16 are gold-related, with 4 active gold placer creeks. The Property also hosts the historic Ruby Creek Molybdenum resource, which has an intact BC Mines Act permit. Stuhini has the Option to acquire 100% of the Ruby Creek Project subject to a 1% Net Smelter Royalty.
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 with its focus on the Ruby Creek Property located approximately 20 km east of Atlin, BC and the Que Property located approximately 70 km north of Johnson's Crossing in the Yukon Territory.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
David O'Brien, President & Chief Executive Officer,
Telephone: (604) 418-4019,
Email: dobrien@stuhini.com
Source:
https://www.newswire.ca/news-releases/stuhini-exploration-renews-option-on-ruby-creek-project-829951415.html GLTA !