QUEBEC CITY, Aug. 01, 2019 (GLOBE NEWSWIRE) -- Stelmine Canada Ltd. (“Stelmine”) (TSX-V: STH) announces today that it has completed a non-brokered private placement (the “Placement”). A total of 1,142,166 common shares of the Company (“Shares”) were issued in this Placement, for total proceeds of $203,500.
In order to perform the planned drilling campaign on its Courcy property, the Company will launch a new financing round for which it has already received commitment.
“Our crew of exploration geologists is carrying on with the pre-drilling phase on the Courcy property. The Society is also pleased to announce the upcoming exploration work on the Joubert property, says Isabelle Proulx, president and CEO of Stelmine”.
The $203,500 Placement consisted of the issuance of:
- 499,666 units (the “Units”) at a price of $0.15 per unit, for gross proceeds of $75,000. Each Unit is composed of one (1) common share of Stelmine (“Share”) and one half (1/2) warrant, each warrant entitling its holder to subscribe to one (1) Share at a price of $0.20 per Share during an 18-month period; and
- 642,500 “flow-through” shares at a price of $0.20 per Share for gross proceeds of $128,500;
The Société de Développement de la Baie-James (SDBJ) is engaged in this placement.
Three (3) insiders of the Company participated in the placement for proceeds of $26,000. These insiders subscribed to the Units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements as per Sections 5.5(a) and 5.7(1)(a) of Regulation 61-101 respecting Protection of Minority Holders in Special Transactions. The exemption is based on the fact that the market value of such participation or the consideration paid by such insider does not exceed 25% of the market value of the Company.
All securities issued in connection with this Placement are subject to a hold period of four months and one day. The Placement is subject to the approval of the TSX Venture Exchange. Stelmine has not filed a material change report in the 21 days preceding the Placement other than in relation to the Placement.
The proceeds of this Placement will be used for the Company’s operating costs, working capital and exploration work currently ongoing on the properties. The proceeds of the flow-through placement will be used by the Corporation to incur Canadian exploration expenses on the Corporation’s properties located in the Province of Quebec and such exploration expenses will be fully incurred on or before December 31, 2020 in accordance with the Corporation’s undertakings to the subscribers of this private placement.
In connection with this Placement, the Company will pay a Finder’s fee of $4,000.
Follow us on www.Stelmine.com and on our Facebook page (Stelmine Canada) where you may see several pictures of the camp and of the exploration work.
Stelmine is a junior mining exploration company and its activities are located in the Province of Québec. Stelmine holds 994 claims spanning 517 km2 on the eastern part of the Opinaca metasedimentary basin, which contains zones with a high potential for gold deposit discovery in geological contexts similar to the one leading to discovery of the Éléonore Mine. Its capital stock consists of 30,790,811 issued and outstanding shares.
Created in 1971 by the James Bay Region Development Act, the SDBJ’s mission is to promote the James Bay territory’s economic development and the development and use of its natural resources, other than hydroelectric resources, which are Hydro-Québec’s responsibility, from a sustainable development perspective. The SDBJ can generate, support and participate in projects for these purposes. www.sdbj.gouv.qc.ca
The statements set forth in this press release, which describes Stelmine’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of security legislation. Positive or negative verbs such as “believe”, “can”, “shall”, “intend”, “expect”, “estimate”, “assume” and other related expressions are used to identify such statements. Stelmine wishes to state that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Stelmine’s actual results and the projections or expectations set forth in the forward-looking statement include the risk that the Company does not complete the Placement as anticipated, and such other risks as described in detail from time to time in the reports filed by Stelmine with security authorities in Canada. Unless otherwise required by applicable securities laws, Stelmine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of the new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of this release.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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