VANCOUVER, BC, Dec. 30,
2022 /CNW/ - Stuhini Exploration Ltd.
("Stuhini" or the "Company") (TSXV: STU) is
pleased to announce that pursuant to the Option Agreement dated
July 29, 2019, as amended (the
"Agreement") with Global Drilling Solutions Inc. ("Global
Drilling") pursuant to which the Company has the option to
acquire 100% of the Ruby Creek Property (the "Property" or
the "Project") in northwestern British Columbia, Canada, the Company has
elected to renew its option on the Property (the "Option")
pursuant to the terms of the Agreement.
Pursuant to the Agreement, Stuhini is entitled to earn a 100%
interest in the Property by issuing up to 7,300,000 common shares
of the Company ("Common Shares") and making cash payments of
up to $1,060,000 over a four-year
term (see news releases dated July 30,
2019 and November 20, 2019).
Following shareholder and TSX Venture Exchange approval of the
Agreement, the Company issued 800,000 Common Shares to Global
Drilling on December 30, 2019, and on
unanimous approval of the board of directors of the Company (the
"Board"), exercised both its first anniversary option
commitment on December 30, 2020,
which involved the issuance of 1,250,000 Common Shares to Global
Drilling, and its second anniversary option commitment on
December 29, 2021, which involved the
issuance of 1,750,000 Common Shares to Global Drilling and the
issuance of a promissory note to Global Drilling in the amount of
$120,000, which note was subsequently
fully paid, including interest thereon on September 20, 2022.
Based on what the Board considers to be a favourable resource
estimate (see news release dated March 15,
2022) and geological results (see news releases dated
January 12, February 22 and October
17, 2022), as well as current molybdenum futures prices (LME
Platts 2 months and out of $29.75 on
December 29th, 2022), the
Board unanimously voted in favour of proceeding with the third
anniversary option commitment (the "Third Option Payment").
The Third Option Payment consisted of the issuance of 1,750,000
Common Shares and a $300,000 cash
payment to Global Drilling.
There are no work commitments required as part of the Agreement.
The final fourth anniversary option commitment under the Agreement
consists of, at the Company's election should it wish to exercise
the Option, the issuance of 1,750,000 Common Shares and a cash
payment of $640,000 on or before
December 31, 2023.
Mr. Dave O'Brien, President and
Chief Executive Officer of Stuhini stated: "The notable uptick in
the LME Platts Molybdenum futures prices over the past month has
enhanced the economic potential of the Ruby Creek Molybdenum
deposit. We have now completed 4 of 5 payments associated with the
option agreement by issuing the vendor 5.5 million common shares
and paying cash consideration of $420,000. With only one payment remaining, we are
close to our goal, which is 100% ownership of the Ruby Creek
Tenures subject to a 1% NSR."
Global Drilling is beneficially owned by Barry Hanslit, a co-founder of the Company and
the vendor of the Property. Immediately prior to the Third Option
Payment, Mr. Hanslit beneficially owned or controlled 5,050,000
Common Shares representing approximately 14.6 % of the outstanding
Common Shares on an undiluted basis. After the Third Option
Payment, Mr. Hanslit beneficially owned or controlled 6,800,000
Common Shares, representing approximately 18.7% of the outstanding
Common Shares on an undiluted basis as at the date of issuance,
representing an increase in holdings of approximately 4.1%.
Mr. Hanslit has advised the Company that the Common Shares were
acquired for investment purposes. Mr. Hanslit has a
long-term view of the investment and may acquire additional
securities of the Company including on the open market or through
private acquisitions or sell securities of the Company including on
the open market or through private dispositions in the future
depending on market conditions, reformulation of plans and/or other
factors that Mr. Hanslit considers relevant from time to
time.
A copy of the applicable early warning report will be
filed on behalf of Mr. Hanslit on the Company's profile on
SEDAR and may also be obtained by contacting Mr. Hanslit at
(604) 639-2278, 8621 Forest Ridge Drive, Whistler, BC V8E 0G1.
Ruby Creek Project: The 28,631-hectare Ruby Creek
Project is road accessible and located 14 kilometres (km) east of
Atlin, British Columbia. There are
48 different documented mineral occurrences on the Property, of
which 16 are gold-related, with 7 significant gold placer creeks.
The Property also hosts the Ruby Creek Molybdenum deposit, which
has an intact Mines Act (British
Columbia) permit. Stuhini has an Option to acquire 100% of
the Ruby Creek Project subject to a 1% Net Smelter Royalty.
About Stuhini Exploration
Ltd.
Stuhini is a mineral exploration company focused on the
exploration and development of precious and base metals properties
in western Canada and
south-western USA. The Company's
portfolio of exploration properties includes: its flagship, the
Ruby Creek Property located approximately 14 km east of
Atlin, BC; the Que Project located
approximately 70 km north of Johnson's Crossing in the Yukon; the South Thompson Project located
approximately 35 km northwest of Grand
Rapids, Manitoba; the Big Ledge Property located
approximately 57 km south of Revelstoke,
British Columbia; and its new portfolio of properties in
south-east Arizona.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains "forward‐looking information" within
the meaning of Canadian securities laws, which may include, but are
not limited to statements relating to the Option and the exercise
of the Option. All statements in this release, other than
statements of historical facts, that address events or developments
that the Company expects to occur, are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in the forward-looking
statements. Factors that could cause the actual results to differ
materially from those in forward-looking statements include
regulatory actions, fluctuations in metal and commodity prices,
market prices and exchange rates, failure to obtain permits, and
continued availability of capital and financing, and general
economic, market or business conditions. In particular, there is no
guarantee that exploration work, as proposed, or otherwise, will be
completed on the Property or that the Option will be exercised.
Such forward-looking information reflects the Company's views with
respect to future events and is subject to risks, uncertainties and
assumptions, including those set out in the Company's prospectus.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
There can be no assurance that any forward-looking statements or
information will prove to be accurate as actual results and future
events could differ materially from those anticipated in such
statements or information. Accordingly, readers should not place
undue reliance on forward-looking statements or information. Except
as required by applicable securities laws, the Company undertakes
no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other
factors, should change.
SOURCE Stuhini Exploration Ltd.