Sterling Metals closes $14-million private placement

Executive Summary

• Sterling Metals Corp. closed a non-brokered private placement raising approximately $14 million in aggregate gross proceeds to accelerate the advancement of its Soo Copper Project.
• The financing consisted of two tranches: 5,244,517 units at $1.50 per unit and 2,666,662 charity flow-through units at $2.30 per unit.
• The company holds approximately $15 million in cash, with the $6.2 million from charity flow-through units designated for exploration expenses, primarily drilling, in the coming year.

Key Details

• Aggregate Gross Proceeds: $14,000,098.10.
• Tranche 1 (Standard Units):
  • Quantity: 5,244,517 units.
  • Price: $1.50 per unit.
  • Gross Proceeds: $7,866,775.50.
• Tranche 2 (Charity Flow-Through Units):
  • Quantity: 2,666,662 units.
  • Price: $2.30 per unit.
  • Gross Proceeds: $6,133,322.60.
• Use of Proceeds:
  • Net proceeds from standard units: General working capital.
  • Gross proceeds from charity flow-through units: Eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.
• Warrant Terms:
  • Each unit (standard and charity) includes one-half of one common share purchase warrant.
  • Exercise Price: $3.00 per common share.
  • Duration: Two years from the closing of the offering.
• Hold Period: Four months plus one day from the date of issuance.
• Related Party Transaction:
  • Insiders subscribed for an aggregate of 186,667 units.
  • Exemptions relied upon: MI 61-101 sections 5.5(b) and 5.7(1)(a) (not listed on specified market; insider participation < 25% of market cap).
  • No material change report filed 21 days prior to closing.
• Commissions: $58,199.88 paid to eligible persons in connection with the closing.
• Operational Context (Soo Copper Project):
  • Summer-fall program included 29 holes totaling ~11,000 meters.
  • Total drilling for the year: Over 13,000 meters.
  • Assays currently in lab/prep; expected to be released in coming weeks.
  • Drilling break anticipated until early February to incorporate data and develop winter program.
  • CEO states $6.2 million raised via charity FT represents minimum anticipated spending on the project next year, majority directed toward drilling.

Notable Quotes

• "On behalf of Sterling, I would like to thank all participants for their support in this financing. The quality of new shareholders who have joined our register is a testament to both the quality of the project and the team charged with advancing it. With approximately $15-million in the treasury, we are in a strong position to rapidly advance the Soo copper project." — Mathew Wilson, CEO
• "We continue to benefit from first-in-class cost advantages due to exceptional access and infrastructure which has allowed us to rapidly advance this project." — Mathew Wilson, CEO
• "We are eager to see the results of this program and begin piecing together what we believe is one of the most significant new copper discoveries in Canada." — Mathew Wilson, CEO