Sitka Gold closes $28.5-million in financings

Executive Summary

• Sitka Gold Corp. has closed a previously announced bought deal brokered private placement and a concurrent non-brokered private placement, raising aggregate gross proceeds of $28,552,402.
• The financing consists of charity flow-through common shares issued at $1.54 per share, with proceeds designated for eligible Canadian exploration expenses related to the RC gold project in the Yukon.
• The company also announced an intention to complete a separate non-brokered financing with strategic investors for 1.5 million traditional flow-through shares at $1.37 per share, raising $2,055,000.

Key Details

• Aggregate Gross Proceeds: $28,552,402.
• Brokered Offering Details:
  • Shares Issued: 16,235,000 charity flow-through common shares.
  • Price: $1.54 per FT share.
  • Gross Proceeds: $25,001,900.
  • Lead Underwriter: Beacon Securities Ltd.
  • Syndicate Members: Cormark Securities Inc., Agentis Capital Markets, Canaccord Genuity Corp., BMO Capital Markets, Paradigm Capital Inc., and Desjardins Capital Markets.
  • Underwriter Commission: $1,500,114 paid in cash.
  • Underwriter Compensation: 974,000 compensation options issued to underwriters.
    • Exercise Price: $1.54 per share.
    • Term: 24 months from closing.
    • Hold Period: Four months from closing.
• Non-Brokered Offering Details:
  • Shares Issued: 2,305,521 FT shares.
  • Price: $1.54 per FT share.
  • Gross Proceeds: $3,550,502.
  • Hold Period: Four months from closing.
• Use of Proceeds:
  • Proceeds from the FT shares will be used to incur eligible Canadian exploration expenses qualifying as flow-through mining expenditures.
  • Expenditures must be incurred on or before December 31, 2026.
  • Qualifying expenditures will be renounced in favor of subscribers effective December 31, 2025.
  • Target project: RC gold project in the Yukon territory, Canada.
• Regulatory/Listing Status:
  • 12,988,000 FT shares from the brokered offering were issued under the listed issuer financing exemption (NI 45-106 Part 5A) and are not subject to resale restrictions.
  • Remaining 3,247,000 FT shares from the brokered offering and all non-brokered shares are subject to a four-month hold period.
  • Offering subject to final approval of the TSX Venture Exchange.
• Traditional FT Offering (Announced/Intended):
  • Type: Non-brokered financing with existing strategic investors.
  • Shares: 1,500,000 common shares qualifying as flow-through shares.
  • Price: $1.37 per traditional FT share.
  • Gross Proceeds: $2,055,000.
  • Use of Proceeds: Qualifying expenditures for the RC gold project in the Yukon.
  • Hold Period: Four months and one day from issuance.
  • Status: Subject to regulatory approvals, including TSX Venture Exchange.