Sitka Gold (SIG-Cse) Closes Oversubscribed $3.33 Million Private Placement
Dec 22, '22 - NR
Sitka Gold is pleased to announce that the Company has closed its previously announced non-brokered private placement for total gross proceeds of $3,332,100.40 (the “Offering”) through the issuance of 15,190,666 flow-through units (the “FT Units”) at a price of $0.15 per FT Unit and 8,103,850 non-flow-through units (the “NFT Units”) at a price of $0.13 per NFT Unit.
Each NFT Unit is comprised of one common share (a “Common Share”) in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase an additional Common Share at a price of $0.22 for a period of 24 months from the date of issuance. Each FT Unit is comprised of one flow-through common share in the capital of the Company and one-half of one Warrant.
The Offering, as announced in the Company’s news releases dated December 7, 2022 (“Sitka Gold Corp. Announces up to $2.5M Private Placement”), and December 19, 2022 (“Sitka Gold Corp. Announces Increase of Previously Announced Private Placement to $3.25 Million”), was oversubscribed. The Company intends to use the net proceeds of the Offering for exploration work on its Yukon gold properties and for general working capital.
In connection with the Offering, the Company issued 644,343 finder’s warrants (the “Finder’s Warrants”) and paid commissions of $90,440.99 to certain finders. Each Finder’s Warrant is subject to the same terms and conditions as the Warrants.
Canaccord Genuity Corp. acted as financial advisor to the Company in connection with the Offering. In consideration for such services, the Company has agreed to issue to Canaccord Genuity Corp. an aggregate of 166,666 Shares (the “Advisory Shares”) at an issue price of $0.15 per Advisory Share.
Certain directors and officers of the Company purchased an aggregate of 150,000 FT Units and 100,000 NFT Units under the Offering, constituting, to that extent, a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities distributed in the Offering nor the consideration received for those securities, in so far as the Offering involves the directors and officers, exceeds 25% of the Company’s market capitalization.
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded mineral exploration company headquartered in Canada. The Company is managed by a team of experienced industry professionals and is focused on exploring for
economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka currently has an option to acquire a 100% interest in the RC, Barney Ridge, Clear Creek and OGI properties in the Yukon and the Burro Creek Gold property in Arizona. Sitka owns a 100% interest in its Alpha Gold property in Nevada, the Mahtin Gold property in the Yukon and the Coppermine River project in Nunavut.
Sitka is currently awaiting additional assay results from its recently completed Phase II summer diamond drill program at its RC Gold Project in the Yukon. The Company is also awaiting results from a recently completed drill program at its Alpha Gold Property in Nevada where a new Carlin-type gold system was recently discovered and where the Company is focused on vectoring towards the high-grade core of this system.
The scientific and technical content of this news release has been reviewed and approved by Cor Coe, P.Geo., Director and CEO of the Company, and a Qualified Person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
“Donald Penner”
President and Director
For more information contact: Donald Penner
President & Director
778-212-1950
dpenner@sitkagoldcorp.com
or Cor Coe
CEO & Director
604-817-4753
ccoe@sitkagoldcorp.com |
