SIG:CC - Sitka Gold Corp. Closes Oversubscribed $1.52 Million Private Placement
(TheNewswire)
VANCOUVER, CANADA – TheNewswire - July 25, 2023 - Sitka Gold Corp.(“Sitka” or the “Company”) (CSE:SIG) (FSE:1RF)(OTC:SITKF) is pleased to announce that theCompany has closed its previously announced non-brokered privateplacement for total gross proceeds of $1,520,090.77 (the “ Offering ”) through the issuance of13,819,007 flow-through units (the “ FT Units ”) at aprice of $0.11 per FT Unit.
Each FT Unit is comprised of one flow-through commonshare in the capital of the Company and one-half of one common sharepurchase warrant (each whole warrant, a “ Warrant ”). EachWarrant entitles the holder to purchase an additional common share inthe capital of the Company (a " Common Share ")at a price of $0.15 for a period of 24 months from the date ofissuance.
The Offering, as announce d in the Company’snews release dated July 14, 2023 (“Sitka Gold Corp. Announces up to $1.2M PrivatePlacement” ) wa s oversubscribed. The Companyintends to use the net proceeds of the Offering for exploration workon its RC Gold Project in Yukon.
Canaccord Genuity Corp. acted as financial advisor tothe Company in connection with the Offering. In consideration for suchservices, the Company agreed to issue to Canaccord Genuity Corp. anaggregate of 166,600 Shares (the “ Advisory Shares ”)at an issue price of $0.15 per Advisory Share.
Certain directors, officers and insiders of the Companypurchased an aggregate of 1,981,000 FT Units under the Offering,constituting, to that extent, a “related party transaction” asdefined under Multilateral Instrument 61-101 (“ MI 61-101 ”). TheCompany has relied on the exemptions from the formal valuation andminority shareholder approval requirements of MI 61-101, as neitherthe fair market value of the securities distributed in the Offeringnor the consideration received for those securities, in so far as theOffering involves the directors and officers, exceeds 25% of theCompany’s market capitalization.
In connection with theOffering, the Company issued 342,223 finder’s warrants (the“ Finder’sWarrants ”) and paid commissions of $40,614.60to certain finders. Each Finder’s Warrant is subject to the sameterms and conditions as the Warrants.
About Sitka Gold Corp.
Sitka Gold Corp. is a well-funded mineral exploration companyheadquartered in Canada. The Company is managed by a team ofexperienced industry professionals and is focused on exploring foreconomically viable mineral deposits with its primary emphasis ongold, silver and copper mineral properties of merit. Sitka currentlyhas an option to acquire a 100% interest in the RC, Barney Ridge,Clear Creek and OGI properties in the Yukon and the Burro Creek Goldproperty in Arizona. Sitka owns a 100% interest in its Alpha Goldproperty in Nevada, its Mahtin Gold property in the Yukon and itsCoppermine River project in Nunavut.
The Company recently announced an NI 43-101 compliant initial inferred Mineral Resource Estimateof 1,340,000 ounces of gold (1) beginning at surface and grading 0.68 g/t at its RC GoldProject in Yukon (see news release dated January 19, 2023). A resourceexpansion diamond drilling program is currently underway.
The Company is also planning additional drilling at its Alpha GoldProperty in Nevada where a new Carlin-type gold system was recentlydiscovered. The Company is focused on vectoring towards the high-gradecore of this system, which is located on the Cortez Trend just 40 kmsoutheast of the Cortez Mine Complex of Barrick/Newmont.
(1) Simpson, R. January19, 2023. Clear Creek Property, RC Gold Project, NI 43-101 TechnicalReport, Dawson Mining District, Yukon Territory.
The scientific and technical content of this news release has beenreviewed and approved by Cor Coe, P.Geo., Director and CEO of theCompany, and a Qualified Person (QP) as defined by National Instrument43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
“ DonaldPenner ”
President and Director
For more information contact:
Donald Penner
President & Director
778-212-1950
dpenner@sitkagoldcorp.com
or
Cor Coe
CEO & Director
604-817-4753
ccoe@sitkagoldcorp.com
Cautionary and Forward-LookingStatements
Neither theCanadian Securities Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the Canadian SecuritiesExchange) accepts responsibility for the adequacy or accuracy of thisrelease.
This release includes certainstatements and information that may constitute forward-lookinginformation within the meaning of applicable Canadian securities laws.Forward-looking statements relate to future events or futureperformance and reflect the expectations or beliefs of management ofthe Company regarding future events. Generally, forward-lookingstatements and information can be identified by the use offorward-looking terminology such as “intends” or“anticipates”, or variations of such words and phrases or statements that certainactions, events or results “may”, “could”, “should”,“would” or “occur”. This information and these statements,referred to herein as "forward ? looking statements", are not historical facts, are made as ofthe date of this news release and include without limitation,statements regarding discussions of future plans, estimates andforecasts and statements as to management's expectations andintentions with respect to, among other things, the use of theproceeds raised under the Offering and the Company’s anticipatedwork programs.
In making the forward-lookingstatements in this news release, the Company has applied severalmaterial assumptions, including without limitation, that the Companywill complete its anticipated work programs and use the proceeds ofthe Offering as currently anticipated.
These forward ? looking statements involve numerous risks and uncertainties andactual results might differ materially from results suggested in anyforward-looking statements. These risks and uncertainties include,among other things, market uncertainty, the results of the Company’santicipated work programs and that the Company will not use theproceeds of the Offering as currently anticipated.
Although management of the Companyhas attempted to identify important factors that could cause actualresults to differ materially from those contained in forward-lookingstatements or forward-looking information, there may be other factorsthat cause results not to be as anticipated, estimated or intended.There can be no assurance that such statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readers shouldnot place undue reliance on forward-looking statements andforward-looking information. Readers are cautioned that reliance onsuch information may not be appropriate for other purposes. TheCompany does not undertake to update any forward-looking statement,forward-looking information or financial out-look that areincorporated by reference herein, except in accordance with applicablesecurities laws. We seek safe harbor.
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