462 million lbs of moly at Ruby Creek in historic resource estimate by Adanac Molybdenum Corp
Once an updated resource estimate .... now being done by Mine Development Associates .... is completed, Stuhini's share price could start reflecting a valuation approaching 1% of the inground resource, or C$110,052,096
A new feasibility study could reflect a valuation closer to 3% of the in ground value.
Adanac Molybdenum Corp valuation reached over C$300 million in 2006-07 time period.
VANCOUVER, BC, Dec. 29, 2021 /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 ("BC"), 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 up to 7,300,000 common shares of the Company ("Common Shares") and making cash payments of up to $1,060,000 over a four-year term. See news releases dated July 30, 2019 and November 20, 2019. Following shareholder and TSX Venture Exchange approval of the Agreement the Company issued 800,000 Common Shares to Global Drilling on December 30, 2019, and on unanimous approval of the board of directors of the Company (the "Board") exercised its First Anniversary Option Commitment on December 30, 2020, which was the issuance of 1,250,000 Common Shares to Global Drilling.
Based on what the Board considers to be favourable geological results (See news releases dated Jan 12th, Mar 18th, Apr 6th, May 5thJul 27th, and Oct 13th, 2021) and the presence of the historic Adanac Molybdenum deposit within the tenures, as well as the steady increase in molybdenum prices over the past 17 months (See news release dated Nov 9, 2021), the Board unanimously voted in favour of proceeding with the Second Anniversary Option Commitment. The Second Anniversary Option Commitment consists of 1,750,000 Common Shares and a $120,000 cash payment. There are no work commitments required as part of this Agreement. The balance of the share issuances and the cash payments are all at the Company's election should it wish to maintain the Option after each anniversary date of the Option term. Global Drilling has agreed to accept an unsecured promissory note in the amount of $120,000 non-interest bearing six month term loan in lieu of the cash payment.
Global Drilling is beneficially owned by Barry Hanslit, a co-founder of the Company and the vendor of the Property. Prior to this Second Anniversary share issuance, Mr. Hanslit beneficially owned or controlled 3,300,000 Common Shares representing an undiluted (3,300,000/24,222,776) 13.6 % of the outstanding Common Shares. Subsequent to this Second Anniversary 1,750,000 share issuance, Mr. Hanslit beneficially owns or controls 5,050,000 Common Shares (5,050,000/25,972,776) representing approximately 19.4% of the outstanding Common Shares on an undiluted basis, an increase of 2.7% of Mr. Hanslit's previously reported shareholding percentage of 16.7%
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 the 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 behalf of Mr. Hanslit on the Company's profile on SEDAR and may also be obtained by contacting Mr. Hanslit at (604) 932-1211, 8621 Forest Ridge Drive, Whislter, BC V8E 0G1.
Ruby Creek Project: The 28,631-hectare Ruby Creek Project is road accessible and located 14 kilometres (km) east of Atlin, BC. There are 48 different documented mineral occurrences on the Property, of which 16 are gold-related, with 7 significant gold placer creeks. The Property also hosts the historic Ruby Creek Molybdenum resource, which has an intact BC Mines Act permit. Stuhini has an 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. The Company's portfolio of exploration properties includes its flagship Ruby Creek Property located approximately 14 km east of Atlin, BC, the Que Project located approximately 70 km north of Johnson's Crossing in the Yukon, the South Thompson Project located approximately 35 km northwest of Grand Rapids, Manitoba and the Big Ledge Property located approximately 57 km south of Revelstoke, BC.
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) 835-4019,
Email: dobrien@stuhini.com