Stuhini Exploration Completes Third Anniversary Option Commitment on Ruby Creek Project
VANCOUVER, BC, December 30, 2022 /CNW/ – Stuhini Exploration Ltd. (“Stuhini” or the “Pursue“) (TSXV: STU) is pleased to announce that pursuant to the option agreement dated July 29, 2019as amended (the “approval“) with Global Drilling Solutions Inc. (“Global drilling“), whereby the Company has the option to acquire 100% of the Ruby Creek Property (the “Property” or the “Project“) in the north-west British Columbia, Canadathe Company has elected to exercise its option on the Property (the “possibility’) under the terms of the Agreement.
Under the terms of the Agreement, Stuhini is entitled to acquire, through the issuance of up to 7,300,000 common shares of the Company (“common shares“) and cash payments of up to $1,060,000 over a period of four years (see press releases dated July 30, 2019 and November 20, 2019). Following shareholder and TSX Venture Exchange approval of the agreement, the Company has issued 800,000 common shares to Global Drilling December 30, 2019and upon the unanimous approval of the Board of Directors of the Company (the “plank“), both exercised their option commitments on the first anniversary December 30, 2020which included the issuance of 1,250,000 common shares to Global Drilling and its second anniversary option grant December 29, 2021which comprised 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 $120,000which was subsequently paid in full, including interest thereon September 20, 2022.
Based on what the Board believes is a favorable resource estimate (see press release dated March 15, 2022) and geological results (see press releases dated January 12, February 22nd and October 17, 2022) and current molybdenum futures prices (LME Platts 2 months and out $29.75 on December 29thth2022), the board voted unanimously to proceed with the commitment of the third anniversary option (the “Payment of the third option“). The third option payment consisted of the issuance of 1,750,000 common shares and a $300,000 Cash payment to Global Drilling.
No work commitments are required under the agreement. The final fourth anniversary option commitment under the Arrangement will be, at the Company’s option, the issuance of 1,750,000 common shares and a cash payment of $640,000 on or before December 312023
Mr. Dave O’BrienStuhini’s President and Chief Executive Officer, stated, “The remarkable increase in 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 related to the option agreement by issuing 5.5 million common shares to the seller and paying cash from $420,000. With only one payment remaining, we are close to our goal of 100% ownership of the Ruby Creek properties, subject to a 1% NSR.”
Global Drilling is beneficially owned by Barry Hanslit, a co-founder of the Company and seller of the property. Immediately prior to the third option payment, Mr. Hanslit owned or controlled 5,050,000 common shares, representing approximately 14.6% of the common shares outstanding on a basic basis. Subsequent to the third option payment, Mr. Hanslit owned or controlled 6,800,000 common shares, representing approximately 18.7% of the ordinary shares outstanding on a basic basis as of the grant date, an increase in ownership of approximately 4.1%.
Mr. Hanslit has notified the Company that the common shares were purchased for investment purposes. Mr. Hanslit has a long-term view of the investment and, depending on the market, may acquire further 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 disposals in the future conditions, reformulation of plans and/or other factors that Mr. Hanslit deems relevant from time to time.
A copy of the applicable early warning report will be filed on the Company’s profile on SEDAR in the name of Mr. Hanslit and may also be obtained from Mr. Hanslit at (604) 639-2278, 8621 Forest Ridge Drive. Piper, BC V8E 0G1.
Ruby Creek Project: The 28,631 hectare Ruby Creek project is road accessible and is located 14 kilometers (km) east of Atlin, British Columbia. There are 48 distinct documented mineral occurrences on the property, 16 of which are gold related, with 7 significant gold placer flows. The property also hosts the Ruby Creek molybdenum deposit which has one intact deposit mining law (British Columbia) to allow. Stuhini has an option to earn 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 metal properties in the West Canada and southwest United States. The Company’s portfolio of exploration properties includes: its flagship Ruby Creek property, located approximately 14 km east of Atlin, BC; the Que project is located approximately 70 km north of Johnson’s Crossing in the Yukon; the South Thompson project is approximately 35 km northwest of Grand Rapids, Manitoba; the Big Ledge property is approximately 57 km south of Revelstoke, British Columbia; and its new real estate portfolio in the Southeast Arizona.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains “forward-looking information” within the meaning of Canadian securities laws, which may include, among other things, statements relating to the Option and the exercise of the Option. All statements in this press release, other than statements of historical fact, that address events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results could differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those contained in any forward-looking statements include regulatory actions, fluctuations in metal and commodity prices, market prices and exchange rates, failure to obtain regulatory approvals and the continued availability of capital and financing and general economic, market or business conditions. In particular, there is no guarantee that exploration work will be completed as proposed or otherwise 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 discussed in the Company’s prospectus. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments could differ materially from those projected in the forward-looking statements. There can be no assurance that any forward-looking statement or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statement or information. Accordingly, readers should not place undue reliance on any 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.
For more information: David O’Brien, President & Chief Executive Officer, Phone: (604) 835-4019, Email: [email protected]