Sterling Metals arranges $10-million financing

Executive Summary

• Sterling Metals Corp. has fully allocated a non-brokered private placement raising up to $10,000,000 in aggregate gross proceeds.
• The offering consists of two tranches: standard units priced at $1.50 per unit and charity flow-through (FT) units priced at $2.30 per unit.
• Net proceeds are designated for general working capital, while gross proceeds from the charity FT units are earmarked for eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.

Key Details

• Aggregate Gross Proceeds: Up to $10,000,000.
• Standard Units:
  • Quantity: Up to 3,088,888 units.
  • Price: $1.50 per unit.
  • Composition: One common share and one-half of one common share purchase warrant.
  • Warrant Terms: Entitles holder to acquire one common share at $3.00 per share for a period of two years from closing.
• Charity Flow-Through (FT) Units:
  • Quantity: Up to 2,333,334 units.
  • Price: $2.30 per unit.
  • Composition: One common share issued on a flow-through basis and one warrant (same terms as standard unit warrants).
  • Tax Status: Qualifies as flow-through shares under Subsection 66(15) of the Income Tax Act (Canada).
• Use of Proceeds:
  • Standard Units: General working capital purposes.
  • Charity FT Units: Incurring eligible Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures.
• Commissions: The company may pay eligible persons a cash commission equal to 6% of the gross proceeds.
• Hold Period: All securities are subject to a hold period of four months plus one day from the date of issuance.
• Conditions: Closing is subject to regulatory approvals, including TSX Venture Exchange approval.
• Insider Participation: It is anticipated that certain insiders will participate in the offering.