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Sitka Gold Announces $10 Million Bought Deal Financing
Vancouver, British Columbia--(Newsfile Corp. - April 1, 2025) - Sitka Gold Corp. (TSXV: SIG) ("S...
About this update from Sitka Gold Corp.
[{"type":"text","content":"Sitka Gold Announces $10 Million Bought Deal FinancingVancouver, British Columbia--(Newsfile Corp. - April 1, 2025) - Sitka Gold Corp. (TSXV: SIG) (\"Sitka\" or the \"Company\") is pleased to announce it has entered into an agreement pursuant to which Beacon Securities Limited (\"Beacon\"), as lead underwriter, on behalf of a syndicate of underwriters (together with Beacon, the \"Underwriters\"), has agreed to purchase, on a \"bought deal\" private placement basis, 14,705,882 common shares that will qualify as \"flow-through shares\" within the meaning of the Income Tax Act (Canada) (the \"FT Shares\") of the Company at a price of $0.68 per FT Share (the \"FT Issue Price\") for gross proceeds to the Company of $10,000,000 (the \"Offering\"). \"This financing, which brings in funds at a significant premium to market, comes amid increased interest in our flagship RC Gold Project following the successful start to our planned 30,000 metre drill program this year,\" said Cor Coe, Director and CEO of Sitka. \"Combined with our already strong treasury of over $14 million, this financing provides long term funding and the ability to ramp up efforts to further advance RC Gold as we push to unlock additional value from this exciting gold discovery.\"The Company will use an amount equal to gross proceeds from the sale of the FT Shares to incur eligible \"Canadian exploration expenses\" that will qualify as \"flow-through mining expenditures\" as such terms are defined in the Income Tax Act (Canada) (the \"Qualifying Expenditures\") related to the Company's RC Gold Project in the Yukon Territory, Canada on or before December 31, 2026. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2025.Subject to compliance with applicable regulatory requirements, the FT Shares will be offered to purchasers resident in all Provinces of Canada (excluding Quebec) pursuant to the listed issuer financing exemption under Part 5A (the \"Listed Issuer Financing Exemption\") of National Instrument 45-106 - Prospectus Exemptions (\"NI 45-106\"). FT Shares sold pursuant to the Listed Issuer Financing Exemption in Canada will not be subject to resale restrictions under applicable Canadian securities laws. The FT Shares may be re-offered or re-sold on a private placement basis in offshore jurisdictions as permitted and...