Solstice Gold closes $1.12-million private placement

Executive Summary

• Solstice Gold Corp. has closed an upsized private placement financing, raising gross proceeds of approximately $1.12 million (up from the previously announced $1 million).
• The capital raise was executed through the issuance of flow-through shares and units, with specific pricing structures for Ontario residents and national investors.
• The majority of the proceeds are designated to fund a follow-up drill program targeting the new Red Cedar discovery at the company's Strathy gold project, with remaining funds allocated to general corporate and working capital purposes.

Key Details

• Gross Proceeds: Approximately $1.12 million (upsized from $1 million).
• Securities Issued and Pricing:
  • Ontario Flow-Through Shares: Issued to Ontario residents at 8.5 cents per share.
  • National Flow-Through Shares: Issued at 6.8 cents per share.
  • Units: Issued at 6.0 cents per unit. Each unit consists of one common share and one-half warrant.
• Warrant Terms: One full warrant is exercisable for one share at an exercise price of 10 cents, exercisable for 12 months from the closing date.
• Use of Proceeds:
  • Majority of funds: Follow-up drill program for the Red Cedar discovery at the Strathy gold project (Temagami, Ont.).
  • Remaining funds: Canadian exploration expenses, flow-through mining expenditures, and general corporate/working capital.
• Hold Period: All securities are subject to a hold period of four months and one day from closing.
• Related Party Transactions:
  • Insiders purchased an aggregate of 1,000,000 units and 788,235 FT shares.
  • Total value of insider purchases: Approximately $117,000.
  • Exempt from formal valuation and minority shareholder approval under Multilateral Instrument 61-101 as the fair market value is below 25% of market capitalization.
• Finder’s Fees:
  • Raymond James: 44,118 shares.
  • Haywood: 21,000 shares.
• Project Context (Strathy Gold Project):
  • 41-square-kilometre land package in the Archean-age Temagami greenstone belt.
  • Recent discovery: Red Cedar intercept of 8.52 g/t Au over 3.5 metres.
  • Historic high-grade intercepts include 5.00 g/t Au over 7.28 metres and 7.66 g/t Au over 7.25 metres.
  • Surface sample results up to 62.7 g/t Au.
  • 17.5 line km Alpha IP survey defined 50 new targets.