Sterling Metals closes $14 million private placement for Soo project

Sterling Metals Corp. (TSXV:SAG)(OTCQB: SAGGF) closed a non-brokered private placement raising $14,000,098.10 in gross proceeds, according to a company statement.

The financing consisted of 5,244,517 units priced at $1.50 per unit and 2,666,662 charity flow-through units at $2.30 per unit. Each unit includes one common share and one-half warrant exercisable at $3.00 per share for two years.

The company will use net proceeds from regular units for general working capital. Gross proceeds from charity flow-through units totaling $6.2 million will fund Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures under the Income Tax Act.

"The $6.2 million raised through charity flow-through represents the minimum we anticipate spending on the project next year, the majority of which will be directed toward drilling," said CEO Mathew Wilson in the statement.

Sterling completed 29 drill holes totaling approximately 11,000 meters during its expanded summer-fall program at the Soo Copper Project in Ontario. Combined with earlier drilling, the company completed over 13,000 meters of drilling this year. Assay results are expected in coming weeks.

The transaction included participation by company insiders who subscribed for 186,667 units, constituting a related party transaction under TSX Venture Exchange policies. Sterling paid $58,199.88 in cash commissions to eligible persons.

All securities carry a four-month-plus-one-day hold period from issuance. The closing remains subject to regulatory approvals including TSX Venture Exchange approval.

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