Business
Stuhini Announces Closing of $308,000 Flow-Through Private Placement
VANCOUVER, Dec. 20, 2019 /CNW/ - Stuhini Exploration Ltd. (TSX-V STU) (the "Company" or "Stuhini") is pleased to announce the completion of its non‑brokered pri
About this update from Eranova Metals Inc.
[{"type":"text","content":" VANCOUVER, Dec. 20, 2019 /CNW/ - Stuhini Exploration Ltd. (TSX-V STU) (the \"Company\" or \"Stuhini\") is pleased to announce the completion of its non‑brokered private placement. The Company issued 1,400,000 common shares that qualify as \"flow-through shares\" for the purposes of the Income Tax Act (Canada) (\"Flow-Through Common Shares\") at a price of $0.22 per Flow-Through Common Share for aggregate gross proceeds to the Company of Cdn$308,000 (the \"Offering\"). The gross proceeds from the sale of the Flow-Through Common Shares will be used to incur \"Canadian exploration expenses\" which qualify as \"flow-through mining expenditures\" (within the meaning of the Income Tax Act (Canada)) (\"Qualifying Expenditures\") to fund the Phase I exploration program of $250,000 on Stuhini's Ruby Creek Project located in British Columbia. The Company will renounce these expenses to the purchasers with an effective date of no later than December 31, 2019. The Company entered into an option agreement dated July 29, 2019 to acquire the Ruby Creek Property (see news release dated July 30, 2019). In order to obtain final TSX Venture Exchange approval, the Ruby Creek option agreement was subject to disinterested shareholder approval (since obtained) and a financing condition, which has now been satisfied upon closing of this Offering. The Flow-Through Common Shares are subject to a hold period that expires on April 21, 2020. David O'Brien, a director of the Company, acquired 50,000 Flow-Through Common Shares of the Company under the Offering. The placement to Mr. O'Brien constitutes 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 (\"MI 61‑101\") adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(b) and 5.7(1)(b) of MI 61‑101 in respect of related party participation in the Offering. About Stuhini Exploration Ltd. Stuhini is a mineral exploration company focused on the exploration and development of precious and base metals properties with its focus on the Metla Property located in northwestern British Columbia, Canada, approximately 150...