Stearman closes $1.5-million first tranche of placement

Executive Summary

• Stearman Resources Inc. has closed the first tranche of its previously announced non-brokered private placement, raising $1.5 million in gross proceeds.
• The company issued 10 million non-flow-through (NFT) units at a price of 15 cents per unit, with net proceeds allocated for general working capital and corporate purposes.
• Each unit includes one common share and a half warrant, with additional finders' fees paid in cash and equity instruments.

Key Details

• Transaction Structure: Non-brokered private placement, first tranche closed.
• Units Issued: 10,000,000 non-flow-through (NFT) units.
• Price: 15 cents per NFT unit.
• Gross Proceeds: $1,500,000.
• Use of Proceeds: General working capital and corporate purposes.
• Warrant Terms (Units): Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant allows the holder to acquire one share at an exercise price of 30 cents for a period of 24 months from issuance.
• Statutory Hold Period: Four months and one day from the date of issuance.
• Finders' Fees:
  • Cash fees: $49,500.
  • Equity fees: 81,000 finders' shares issued at 15 cents each.
  • Warrant fees: 411,000 non-transferable finders' warrants.
  • Finder's Warrant Terms: Each entitles the holder to acquire one share at 30 cents for 24 months from issuance.

Notable Quotes

• "We're very pleased with the strong investor support shown in the first tranche," said Lester Esteban, chief executive officer of Stearman Resources. "This financing marks an important step forward as we continue to advance our corporate objectives and position Stearman for growth in the months ahead."