Stuhini Exploration New Private Placement led by Eric Sprot Vancouver, British Columbia – February 23rd, 2023 Stuhini Exploration Ltd. (the “Company” or “Stuhini”) (TSX-V: STU and OTCPK: STXPF) is pleased to announce a non-brokered private placement (“Private Placement”) of up to 4,000,000 units of the Company (“Units”) at a price of $0.40 per Unit (the “Issue Price”) for gross proceeds to the Company of up to $1,600,000 The Company is pleased to advise that Eric Sprott has agreed to purchase $1,000,000 of Units under the Private Placement.
Dave O’Brien, Company President and CEO, stated: “We are very pleased with Mr. Sprott’s continued support as a key shareholder. His investment is a strong endorsement for the Ruby Creek Molybdenum deposit as well as the outlook for molybdenum going forward. The price of molybdenum has tripled since the summer of 2021, and we believe the Ruby Creek Project is a world class deposit.” See news release dated March 15, 2022 announcing the molybdenum mineral resource estimate and technical report dated April 22, 2022 filed on SEDAR.
Each Unit will consist of one common share (each a “Common Share”) of the Company and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant is exercisable into one Common Share at a price of $0.50 per Common Share for a period of two years following the closing of the Private Placement.
The net proceeds of the Private Placement will be used: (i) to fund the final cash payment of $640,000 under the option agreement pursuant to which the Company was granted a right to acquire a 100% interest in the Ruby Creek Property; and (ii) for general exploration, corporate and administrative expenses.
The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSXV. All securities to be issued pursuant to the Private Placement will have a hold period of four months and one day from the closing of the Private Placement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.