SITKF - Sitka Gold Corp. Closes Oversubscribed $3.33 Million Private Placement
(TheNewswire)
V ancouver , BC - TheNewswire - December 22, 2022 - Sitka Gold Corp. (“Sitka” or the “Company”)(CSE:SIG) (FSE:1RF) (OTC:SITKF) is pleased to announce that the Company has closed its previously announcednon-brokered private placement for total gross proceeds of$3,332,100.40 (the “ Offering ”) through the issuance of15,190,666 flow-through units (the “ FT Units ”) at aprice of $0.15 per FT Unit and 8,103,850 non-flow-through units (the“ NFT Units ”) at a price of $0.13 per NFT Unit.
Each NFT Unit is comprised of one common share (a“ Common Share ”) in the capital of the Company and one-half of one commonshare purchase warrant (each whole warrant, a “ Warrant ”). EachWarrant entitles the holder to purchase an additional Common Share ata price of $0.22 for a period of 24 months from the date of issuance.Each FT Unit is comprised of one flow-through common share in thecapital of the Company and one-half of one Warrant.
The Offering, as announced in the Company’s newsreleases dated December 7, 2022 (“Sitka Gold Corp. Announces up to $2.5M PrivatePlacement” ), and December 19, 2022 (“Sitka Gold Corp.Announces Increase of Previously Announced Private Placement to $3.25Million” ), was oversubscribed. The Companyintends to use the net proceeds of the Offering for exploration workon its Yukon gold properties and for general working capital.
In connection with the Offering, the Company issued644,343 finder’s warrants (the “ Finder’s Warrants ”) and paid commissions of $90,440.99 to certain finders.Each Finder’s Warrant is subject to the same terms and conditions asthe Warrants.
Canaccord Genuity Corp. acted as financial advisor tothe Company in connection with the Offering. In consideration for suchservices, the Company has agreed to issue to Canaccord Genuity Corp.an aggregate of 166,666 Shares (the “ Advisory Shares ”)at an issue price of $0.15 per Advisory Share.
Certain directors and officers of the Company purchasedan aggregate of 150,000 FT Units and 100,000 NFT Units under theOffering, constituting, to that extent, a “related partytransaction” as defined under Multilateral Instrument 61-101(“ MI 61-101 ”). The Company has relied on the exemptions from theformal valuation and minority shareholder approval requirements of MI61-101 , as neither thefair market value of the securities distributed in the Offering northe consideration received for those securities, in so far as theOffering involves the directors and officers, exceeds 25% of theCompany’s market capitalization.
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 for
economically 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, the Mahtin Gold property in the Yukon and theCoppermine River project in Nunavut.
Sitka is currently awaiting additional assay results from its recentlycompleted Phase II summer diamond drill program at its RC Gold Projectin the Yukon. The Company is also awaiting results from a recentlycompleted drill program at its Alpha Gold Property in Nevada where anew Carlin-type gold system was recently discovered and where theCompany is focused on vectoring towards the high-grade core of thissystem.
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 the CanadianSecurities Exchange nor its Regulation Services Provider (as that termis defined in the policies of the Canadian Securities Exchange)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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