SITKF - Sitka Closes $6.4 Million Financing With a Lead Order from Palisades Goldcorp
(TheNewswire)
V ancouver, Canada - TheNewswire - March 5, 2021 - Sitka Gold Corp.(“Sitka” or the “Company”) (C NSX :SIG. CN ) (FSE:1RF) (OTC:SITKF) is pleased to announce that it has closed its previouslyannounced non-brokered private placement for total gross proceeds of $6,377,065.62 through theissuance of 21,243,684 flow-through units at a price of $0.135 perflow-through unit and 29,243,069 non flow-through units at a price of$0.12 per non flow-through unit. Each flow-through unit is comprisedof a common share of Sitka and a half warrant. Each non flow-throughunit is comprised of a common share of Sitka and a full warrant. Eachfull warrant will entitle the holder to purchase an additional commonshare at a price of $0.18 for a period of 36 months from the date ofclosing of the private placement. Palisades Goldcorp Ltd. was the leadorder in the private placement.
The financing, originally announced on February 12,2021, was significantly oversubscribed. Sitka engaged CanaccordGenuity Corp. to act as its financial advisor for the offering. The Company intends to use thenet proceeds of the Private Placement for exploration work on itsArizona, Nevada and Yukon gold properties and for general workingcapital.
“With the closing of this financing, Sitka is heading into the2021 exploration season with a strong treasury that will enable us tomaterially advance our portfolio of properties ,” commented Cor Coe, CEO anddirector of Sitka . “We arepleased to welcome new institutional shareholders to Sitka and wouldlike to thank everyone who participated in the financing. We arelooking forward to a very active year as we push to unlock value fromour assets.”
In connection with the privateplacement, the Company has paid commissions totalling $86,816.86 and issued 710,210 finder’s warrants. Each finder’s warrantis exercisable to acquire one common share of the company at exerciseprice of $0.18 for 36 months from the date of closing of the privateplacement. The Company also issued458,333 shares as a commission on a portion of the proceeds of thefinancing.
Officers and directors of the Company subscribed for atotal of 1,220,000 flow-through units of the private placement.Participation of officers and directors of Sitka in the privateplacement is considered a “related party transaction” as definedunder Multilateral Instrument 61-101 (“MI 61-101”). Thetransactions are exempt from the formal valuation and minorityshareholder approval requirements of MI 61-101 as neither the fairmarket value of the securities to be distributed in the PrivatePlacement nor the consideration to be received for those securities,in so far as the Private Placement involves the Insiders, exceeds 25%of the Company’s market capitalization.
About Palisades Goldcorp
Palisades Goldcorp is Canada's resource focused merchant bank.Palisades' management team has a demonstrated track record of makingmoney and is backed by many of the industry's most notable financiers.With junior resource equities valued at generational lows, managementbelieves the sector is on the cusp of a major bull market move.Palisades is positioning itself with significant stakes in undervaluedcompanies and assets with the goal of generating superior returns.
About Sitka Gold Corp.
Sitka Gold Corp. is a mineral exploration company headquartered inCanada and managed by a team of experienced mining industryprofessionals. The Company is focused on exploring for economicallyviable mineral deposits with its primary emphasis on gold, silver andcopper mineral properties of merit. Sitka currently has an option toacquire a 100% interest in the RC, Barney Ridge, Clear Creek and OGIproperties in Yukon and the Burro Creek Gold property in Arizona.Sitka owns a 100% interest in its Alpha Gold property in Nevada,it’s Mahtin Gold property in the Yukon and it’s Coppermine Riverproject in Nunavut. Directors and Management own approximately 15% ofthe outstanding shares of Sitka Gold Corp., a solid indication oftheir alignment with shareholders’ interests.
ON BEHALF OF THE BOARD OF DIRECTORS OF
For more information, please contact:
CEO & Director
Tel: 604-979-0509
Cautionary and Forward-Looking Statements
This news release containsforward ? looking statements and forward ? looking information within the meaning of applicable securitieslaws. These statements relate to future events or future performance.All statements other than statements of historical fact may beforward ? looking statements or information.Forward ? looking statements and information areoften, but not always, identified by the use of words such as“appear”, “seek”, “anticipate”, “plan”,“continue”, “estimate”, “approximate”, “expect”,“may”, “will”, “project”, “predict”, “potential”,“targeting”, “intend”, “could”, “might”, “should”,“believe”, “would” and similar expressions.
Forward-looking statements andinformation are provided for the purpose of providing informationabout the current expectations and plans of management of the Companyrelating to the future. Readers are cautioned that reliance on suchstatements and information may not be appropriate for other purposes,such as making investment decisions. Since forward ? looking statements and information address future events andconditions, by their very nature they involve inherent risks anduncertainties. Actual results could differ materially from thosecurrently anticipated due to a number of factors and risks. Theseinclude, but are not limited to, the expected timing and terms of theprivate placement, use of proceeds, anticipated work program, requiredapprovals in connection with the work program and the ability toobtain such approvals. Accordingly, readers should not place unduereliance on the forward ? looking statements,timelines and information contained in this news release. Readers arecautioned that the foregoing list of factors is not exhaustive.
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