Stelmine closes $382,500 non-brokered private placement
Montréal, December 30, 2011 – Stelmine Canada Ltd. (“Stelmine”), (TSX-STH) announces the
closing of a non-brokered private placement for gross proceeds of $382,500.
The private placement consisted of: 81 Series A Units (the “Units A”), at a price of $1,500.00 per Unit A, each Unit A consists of 10,000 flow-through common shares at a price of $0.15 per flow-through common share, and 10,000 share purchase warrants. Each share purchase warrant shall entitle its holder thereof to acquire one additional common share of Stelmine at a price of $0.20 for a period of 12 months from the closing date for gross proceeds of $121,500.
261 Series B Units (the “Units B”), at a price of $1,000.00 per Unit B, each Unit B consists of
20,000 common shares at a price of $0.05 per common share and 20,000 share purchase
warrants. Each share purchase warrant shall entitle its holder thereof to acquire one additional
common share of Stelmine at a price of $0.10 for a period of 12 months from the closing date for a
gross proceeds $261,000.
Proceeds of the private placement will be applied toward exploration work on the Company’s
properties and towards meeting short term operating working capital requirements.
Three insiders of Stelmine subscribed under the offering for gross proceeds of $25,000. The
private placement is a related party transaction for the purposes of TSX Venture Exchange Policy
5.9, however is exempt from the minority approval and valuation requirements of such policy.
These insiders are “related parties”, as this term is defined in Regulation 61-101 respecting
Protection of Minority Securityholders in Special Transaction (“Regulation 61-101”), of the
Company since they are directors or officers of the Company. Therefore, this private placement is
a “related party transaction” within the meaning of Regulation 61-101, which is exempt from the
formal evaluation and from the minority approval, as the fair market value of the securities being
issued to the related parties does not exceed 25% of the Company’s market capitalization.
All securities issued pursuant to the private placement are subject to a four-month and one day
hold period and may not be traded until May 1, 2012. The private placement is subject to the final
approval of the TSX Venture Exchange.
Stelmine is a junior mining exploration company, the common shares of which are listed on the
TSX Venture Exchange.
For further information please contact
Michel Lemay at 514-866-8209.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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- Stelmine appoints Julie Lemieux on its Board of Directors
- Stelmine completes a strategic private placement of $600,050 with a lead order from Palisades Goldcorp Ltd.
- New on Stelmine’s Board of Directors
- Stelmine completes exploration work on its Trieste property
- Stelmine initiates a new exploration campaign on its Joubert gold property
- Stelmine to resume exploration of the Mercator gold property
- Stelmine to launch its exploration campaign