The flow-through units are priced at CAD 0.17 with a half warrant at CAD 0.23. The non-flow-through units are priced at CAD 0.14 also with a half warrant at CAD 0.23. All warrants in this placement have a term of 24 months.
This private placement is being offered on a non-brokered basis and the units are subject to a statutory hold period of four months and one day from the closing date of the offering. Sitka has retained Canaccord Genuity Corp. to act as financial advisor for the offering. The company may pay a finder's fee for a portion of the gross proceeds from the private placement. The offering is subject to regulatory approval and is expected to close on or before June 7, 2022.
The Company intends to use the net proceeds from the private placement for exploration work on its Yukon gold properties and for general working capital.
Sitka is currently undertaking a planned 10,000 meter diamond drilling program at its RC Gold Project in the Yukon where the last hole drilled in 2021 ("Hole 21") resulted in the discovery of a new gold zone (the "Blackjack Zone"). This discovery hole intersected 220.1 metres averaging 1.17 g/t gold from surface, including 50.5 metres at 2.08 g/t gold (see news release dated December 13, 2021). Initial follow-up drilling completed over the winter has now confirmed that gold mineralization extends laterally to the west and south and is continuous along the vertical section (see news releases dated April 26, May 17 and May 18, 2022). Results are pending from DDRCCC-22-025, the final hole of the winter drill program, drilled approximately 80 metres east of hole 21, and the Blackjack Zone remains open in all directions.
Bottom line: existing shareholders will look at this placement with one eye laughing and one eye crying. Laughing because unlike many of its peers, Sitka can raise fresh capital with ease, providing additional financial security for the ongoing 10,000 meter drill program. Crying because the revaluation that was actually due after the discovery has not really happened (yet). The placement today is just $0.02 CAD above the placement in May of last year. (see press release dated May 5, 2021). Yet investors who can position themselves today know much more than investors did a year ago. At that time, the Blackjack Zone had not even been discovered, let alone confirmed by follow-up results. Sitka certainly didn't deliver the risk premium that early investors had dreamed of.
But be that as it may, what is certain is that Sitka has made a significant discovery and that alone counts. The gold grades of the Blackjack Zone are on average twice as high as the measured resources at its neighbors Victoria Gold and Banyan Gold There are good geological reasons for this, which (as we have been told) have not escaped the attention of large companies like Agnico Eagle.
It is becoming apparent that Sitka will be the next company to show a significant resource in this region of the Yukon, following the successes of its neighbors Victoria Gold and Banyan Gold. There have never been so many eyes on Sitka as there are right now. The folks at Sprott already know why they are securing another nice piece of the company now of all times. Sitka is currently valued at just CAD 18 million. There is still a lot of room for a lot of upside.
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According to §34b WpHG and § 48f Abs. 5 BörseG (Austria) we would like to point out that GOLDINVEST Consulting GmbH and/or partners, principals or employees of GOLDINVEST Consulting GmbH hold shares of Sitka Gold and therefore a conflict of interest exists. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares of the company at any time. Furthermore, GOLDINVEST Consulting GmbH is remunerated by Sitka Gold for reporting on the company. This is another clear conflict of interest.