Sitka Gold closes $2.05-million private placement

Executive Summary

• Sitka Gold Corp. has closed a non-brokered private placement with existing strategic investors, raising $2,055,000 through the issuance of 1.5 million flow-through common shares.
• This transaction, combined with a $28.5 million financing closed the previous week, brings the company's total treasury to over $43 million, positioning it to fund a massive 60,000-meter drilling campaign at its flagship RC gold project in 2026.
• The proceeds will be used to incur eligible Canadian exploration expenses for the RC gold project, with renunciations effective December 31, 2025.

Key Details

• Transaction Structure: Non-brokered private placement with existing strategic investors.
• Gross Proceeds: $2,055,000.
• Shares Issued: 1.5 million flow-through (FT) common shares.
• Price Per Share: $1.37 per FT share.
• Use of Proceeds: To incur eligible Canadian exploration expenses qualifying as flow-through mining expenditures related to the RC gold project in Yukon, Canada.
• Tax Renunciation: All qualifying expenditures will be renounced in favor of subscribers effective December 31, 2025.
• Hold Period: Securities are subject to a hold period expiring on March 6, 2026.
• Finder’s Fees: None paid.
• Regulatory Status: Subject to final acceptance from the TSX Venture Exchange.
• Strategic Context: The company states this financing, alongside a $28.5 million financing closed last week, strengthens its treasury to over $43 million with no debt.
• Operational Impact: Enables planning for the largest drill program ever conducted at RC gold, anticipating up to 60,000 meters of diamond drilling in 2026 (doubling total meters drilled to date).
• Pending Drills: 62 drill holes pending from RC gold and 7 from the Coppermine River project.
• Correction: The company clarified an error in a previous release regarding the $28.5 million financing, correcting the number of compensation options issued to underwriters from 974,000 to 974,100.

Notable Quotes

• "This financing, together with the financing that closed last week for $28.5-million, represents a pivotal milestone for Sitka, significantly strengthening our treasury to over $43-million and positioning the company to rapidly advance its flagship RC gold project." — Cor Coe, CEO and Director
• "The proceeds from these financings will enable Sitka to plan the largest drill program ever conducted at RC gold. Up to 60,000 metres of diamond drilling is anticipated at RC gold in 2026, which will effectively double the total metres drilled to date and rank among the largest drill campaigns ever conducted in the Yukon." — Cor Coe, CEO and Director