Stockworks Gold closes $593,608 private placement

Executive Summary

• Stockworks Gold Inc. has closed a private placement financing of 5,936,080 units at $0.10 per unit, generating aggregate gross proceeds of $593,608.
• The transaction includes a related-party component where four insiders subscribed for $118,108, with the company relying on specific exemptions from Multilateral Instrument 61-101 regarding formal valuation and minority shareholder approval.
• Net proceeds will be allocated to general working capital, exploration expenditures, and corporate purposes, with all issued securities subject to a statutory hold period of four months and one day.

Key Details

• Gross Proceeds: $593,608
• Units Issued: 5,936,080 units at $0.10 per unit
• Unit Structure: Each unit consists of one common share and one-half common share purchase warrant
• Warrant Terms: Each whole warrant is exercisable for one additional common share at $0.15/share for the first year and $0.20/share for the second year from issuance
• Insider/Related Party Subscription: Four insiders subscribed for $118,108 (1,181,080 units), constituting a related-party transaction under MI 61-101
• Regulatory Exemptions: Exempt from formal valuation (MI 61-101 sections 5.5(a) and (b)) as the interested party's fair market value does not exceed 25% of market cap; exempt from minority approval (section 5.7(1)(a) and (b)) as consideration is under $2.5M, independent directors are present, and all independent directors approved the transaction
• Finder's Compensation:
• Registered finder: $10,000 cash + 100,000 non-transferable warrants (exercisable at $0.15/$0.20)
• HAG Global Consulting GmbH: $23,440 cash + 234,400 finder units (each consisting of one common share and one-half non-transferable warrant, exercisable at $0.15/$0.20)
• Hold Period: Four months and one day from issuance per applicable securities laws and exchange policies
• Use of Proceeds: General working capital, exploration expenditures, and corporate purposes