Stuve Gold Corp Announces Private Placement Closing
Calgary, August 9, 2021 - Stuve Gold Corp. (the "Corporation" or "Stuve Gold") (TSXV:STUV) is pleased to announce the closing of its recently announced private placement (see Stuve Gold press releases dated April 22, 2021 and June 9, 2021). The private placement involved the sale of 1,750,000 units of the Corporation (each, a "Unit") at a price of $0.20 per Unit for gross and net proceeds to the Corporation of $350,000. Each Unit was comprised of one common share and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to acquire a common share of the Corporation for a price of $0.35 until August 6, 2023.
Proceeds from the private placement will be used to fund the initial drilling program of Stuve Gold's Coba SW project.
The private placement remains subject to final acceptance by the TSX Venture Exchange. The securities issued are subject to a four month and one day hold period.
Related Party Participation in the Private Placement
An insider subscribed for 125,000 Units for a total of 7.1% of the private placement. As an insider of the Corporation participated in this private placement, it is deemed to be a "related party transaction" as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions ("MI 61-101").
Neither the Corporation, nor to the knowledge of the Corporation after reasonable inquiry, a related party, has knowledge of any material information concerning the Corporation or its securities that has not been generally disclosed.
The private placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(c) and 5.7(1)(b)) as it was a distribution of securities for cash and neither the fair market value of the Units distributed to, nor the consideration received from, interested parties exceeded $2,500,000.
The Corporation did not file a material change report more than 21 days before the expected closing of the private placement because the details of the participation therein by related parties of the Corporation were not settled until shortly prior to closing of the private placement and the Corporation wished to close on an expedited basis for business reasons.
About Stuve Gold
Stuve Gold is engaged in advancing mineral properties in Chile that exhibit promising potential for gold, copper, silver and cobalt as a result of historical mining activities on, or associated with, those properties. Each of the properties within Stuve Gold's current portfolio, including the 'Coba SW', the 'Inca' and the 'Santa Gracia' properties, exhibit those attributes.
Stuve Gold's common shares are listed on the TSX-V under the symbol "STUV". More information on Stuve Gold may be viewed on Sedar.com or the Corporation's website www.stuvegoldcorp.ca.
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Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to the use of proceeds, obtaining final acceptance of the private placement from the TSX Venture Exchange and details concerning its properties, and exploration plans thereon. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of metals including gold, silver, copper and cobalt; and the results of exploration programs. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Stuve Gold disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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 release.
For further information, please contact:
Gordon Aldcorn
President, Stuve Gold Corp.
Phone: (403) 618 6507
Email: galdcorn@stuvegoldcorp.ca
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