Stelmine completes a private placement of $907,380
30 October 2019 - 7:54AM
Stelmine Canada Ltd.
(“Stelmine”) (TSX-V: STH)
announces today that it has completed a non-brokered private
placement (the “Placement”). A total of 6 532 902 common
shares of the Company (“Shares”) were issued in this Placement, for
total proceeds of $907,380.
The $907 380 Placement consisted of the issuance
of:
- 4 596 152 units (the “Units”) at a price of $0.13 per
unit, for gross proceeds of $597,500. 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 a 24 month period from the
date of closing of the placement; and
- 1 936 750 “flow-through” shares of Stelmine at a price of
$0.16 per Share for gross proceeds of $309,880;
The following funds participated in the
Placement: Capital régional et coopératif Desjardins (CRCD), the
Fonds de solidarité FTQ and SIDEX, these last two, in an amount of
$100,000 each through FIELD-ACTION 2019, an initiative designed to
encourage junior mining companies to perform their fieldwork in
Québec while at the same time supporting their working capital.
“I am very pleased that these important
institutions, which proceeded to a first investment in 2017, have
renewed their confidence in Stelmine’s projects,” said Isabelle
Proulx, the Company’s President and CEO. “This financing will allow
our company to continue the exploration work program initiated in
2019.”
Two (2) insiders of the Company participated in
the Placement for aggregate gross proceeds of $3,000. 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
Placement are subject to a hold period of four months and one day.
The Placement is subject to the final approval of the TSX Venture
Exchange. Stelmine did not file a material change report 21 days
prior to closing of the Placement as the participation of insiders
of Stelmine in the Placement had not been confirmed at that
time.
The proceeds of this Placement will be used for
the Company’s operating costs, exploration on the properties and
working capital. 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 flow-through Shares.
In connection with this Placement, the Company
will pay a Finder’s fees of $24 550.
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.
About StelmineStelmine is a
junior mining exploration company and its activities are located in
the Province of Québec. Stelmine holds 955 claims spanning 497 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 37 324 046 issued
and outstanding shares.
About Capital régional et coopératif
DesjardinsWith more than 105,000 shareholders, Capital
régional et coopératif Desjardins (CRCD) is a public company with
$2,212 million in net assets. CRCD contributes to Québec economic
development through several levers developed with its manager,
Desjardins Capital. These levers, with CRCD as the driving force,
form an entrepreneurial ecosystem designed to value and nurture the
best of Québec entrepreneurship. CRCD supports the growth of nearly
500 businesses, cooperatives and funds in various industries
spanning all Québec regions, helping to create and retain more than
60,500 jobs.
About SIDEX SIDEX is an
initiative of the Québec government and the Fonds de solidarité FTQ
whose mission is to invest in companies engaged in mineral
exploration in Québec in order to diversify the province’s mineral
base, promote innovation and new entrepreneurs.
About the Fonds de solidarité
FTQThe Fonds de solidarité FTQ is a capital development
fund that channels the savings of Quebecers into investments. With
$15.6 billion in net assets as at May 31, 2019, the Fonds has
helped create and protect 215,104 jobs. The Fonds has 3,126 partner
companies and today has more than 700,000 shareholders-savers.
Forward-Looking StatementsThe
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.
For more
information : |
|
Isabelle Proulx President and
CEO |
Christian GuilbaudDirector |
418-626-6333info@stelmine.com |
514-813-7862 |
Stelmine.com |
|
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