Stelmine Closes $700,000 Private Placement
QUÉBEC CITY, June 11, 2021 (GLOBE NEWSWIRE) -- Stelmine Canada (STH-TSXV) (“Stelmine” or the “Company”) is pleased to announce that it has closed its recently announced non-brokered private placement (the “Offering”). A total of 5,384,614 units of Stelmine (the "Units") were issued at a price of $0.13 per unit for gross proceeds of $700,000. Each Unit comprised one common share of Stelmine and one-half of a common share purchase warrant. Each full warrant entitles the holder to acquire one common share of the Company at $0.20 for a period of 36 months from issuance. The warrants are callable from Stelmine should the common shares of the company exceed $0.30 for a period of 20 consecutive trading days following the four-month hold.
Three (3) insiders of the Company participated in the private placement for aggregate gross proceeds of $16,750. These insiders purchased Units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements pursuant to Sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, on the basis that the fair market value of such participation or the consideration paid by such insiders does not exceed 25% of the market capitalization of the Company.
All securities issued in connection with this Offering are subject to a hold period of four months and one day. The private 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.
Stelmine has now raised total gross proceeds of $1.4 million this month in two separate financings with strategic investors. The funds will be used for exploration on the Courcy and Mercator Projects in the Caniapiscau region and for general working capital purposes. In connection with this placement, the Company will pay finder’s fees of $23,244.
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 1,574 claims or 815 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 expected closing of and the anticipated use 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. Risks that could cause results to differ from those stated in the forward-looking statements in this release include those relating to the ability to complete the Offering on the terms described above. 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.
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
For further information, contact:
Isabelle Proulx, President and CEO
Email: iproulx@stelmine.com
Tel: 418-626-6333
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