Sitka Gold Announces $10 Million Bought Deal Financing
Summary
Vancouver, British Columbia--(Newsfile Corp. - April 1, 2025) - Sitka Gold Corp. (TSXV: SIG) ("Sitka" or the "Company") is pleased to announce it has entered into an agreement pursuant to which Beacon Securities Limited ("Beacon"), as lead underwriter, on behalf of a syndicate of underwriters (together with Beacon, the "Underwriters"), has agreed to purchase, on a "bought deal" private placement basis, 14,705,882 common shares that will qualify as "flow-through shares" within the meaning of the Income Tax Act (Canada) (the "FT Shares") of the Company at a price of $0.68 per FT Share (the "FT Issue Price") for gross proceeds to the Company of $10,000,000 (the "Offering"). "This financing, which brings in funds at a significant premium to market, comes amid increased interest in our flagship RC Gold Project following the successful start to our planned 30,000 metre drill program this year," said Cor Coe, Director and CEO of Sitka. "The Company will use an amount equal to gross proceeds from the sale of the FT Shares to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures") related to the Companys RC Gold Project in the Yukon Territory, Canada on or before December 31, 2026. FT Shares sold pursuant to the Listed Issuer Financing Exemption in Canada will not be subject to resale restrictions under applicable Canadian securities laws. Each Compensation Option shall entitle the holder thereof to acquire one common share of the Company at the FT Issue Price for a period of 24 months from the closing date of the Offering.