Ms. Isabelle Proulx reports
STELMINE COMPLETES PRIVATE PLACEMENT OF FLOW-THROUGH UNITS
Stelmine Canada Ltd. has closed a non-brokered private placement of flow-through (FT) units for gross proceeds of $933,253.50.
The company issued a total of 3,110,845 FT units at a price of 30 cents 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) and one-half of a non-flow-through common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share at a price of 26 cents per common share until Dec. 20, 2024.
Michael Gentile, CFA
Mr. Gentile, an existing strategic investor of the company, acquired 469,670 FT units pursuant to the offering, representing approximately 9.9 per cent 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 722.214.171.124 of the Taxation Act (Quebec), respectively.
In connection with the offering, the company will pay a finder's fee of $1,750 in cash. 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.
Stelmine is a junior mining exploration company pioneering a new gold district (Caniapiscau) east of James Bay in the underexplored eastern part of the Opinaca metasedimentary basin where the geological context has similarities to the Eleonore mine. Stelmine has 100-per-cent ownership of the metasedimentary basin where the geological context has similarities to the Eleonore mine. Stelmine has 100-per-cent ownership of 1,782 claims, or 939 square kilometres, in this part of Northern Quebec, highlighted by the Courcy and Mercator projects.
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