Yahoo Finance Stelmine completes Private Placement of Flow-Through Units
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QUEBEC CITY, Dec. 21, 2022 (GLOBE NEWSWIRE) -- Stelmine Canada (“Stelmine” or the “Company”) (TSXV : STH) is pleased to announce that it has closed a non-brokered private placement (“Offering”) of flow-through units (the “FT Units”) for gross proceeds of $933,253.50.
The Company issued a total of 3,110,845 FT Units at a price of $0.30 per FT Unit. Each FT Unit consisted of one common share of the Company to be issued as a “flow-through share” within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Quebec) (each, a “FT Share”) and one-half of a non-flow-through common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one additional common share at a price of $0.26 per common share until December 20, 2024.
Michael Gentile, CFA
Michael Gentile, an existing strategic investor of the Company, acquired 469,670 FT Units pursuant to the Offering, representing approximately 9.9% of the issued and outstanding common shares of the Company on a partially diluted basis assuming full exercise of his warrants.
Mr. Gentile has an extensive institutional money management background and is an active and strategic investor in the junior mining sector. Mr. Gentile owns significant stakes in over 20 small-cap exploration companies.
The Company intends to use the gross proceeds of the Offering to incur “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) and with respect to Quebec resident purchasers who are eligible individuals under the Taxation Act (Quebec), the “Canadian exploration expenses” will also qualify for inclusion in the “exploration base relating to certain Quebec exploration expenses” and for inclusion in the “exploration base relating to certain Quebec surface mining expenses or oil and gas exploration expenses” as both terms are defined in sections 726.4.10 and 726.4.17.2 of the Taxation Act (Quebec), respectively.
In connection with the Offering, the Company will pay a finder’s fee of $1,750 in cash (the “Finder’s Fee”). Payment of the Finder’s Fee is subject to the acceptance of the TSX Venture Exchange.
The securities issued pursuant to the Offering are subject to a statutory four month hold period ending on April 21, 2023 in accordance with applicable securities laws.
About Stelmine Canada
Stelmine is a junior mining exploration company pioneering a new gold district (Caniapiscau) east of James Bay in the under-explored eastern part of the Opinaca metasedimentary basin where the geological context has similarities to the Eleonore mine. Stelmine has 100% ownership of metasedimentary basin where the geological context has similarities to the Eleonore mine. Stelmine has 100% ownership of 1,782 claims or 939 km² in this part of northern Quebec, highlighted by the Courcy and Mercator Projects.
Forward-looking statements
Certain information in this press release may contain forward-looking statements, such as statements regarding the anticipated use and tax status of the proceeds from the Offering, acquisition and expansion plans, availability of quality acquisition opportunities, and growth of the Company. This information is based on current expectations and assumptions (including assumptions in connection with obtaining all necessary approvals for the Offering and general economic and market conditions) that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
Cautionary statement
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, contact:
Isabelle Proulx, President and CEO | Investor Relations: |
