STLLR Gold closes C$25.7 Million Bought Deal Financing led by Eric Sprott

By Kevin Vincent

STLLR Gold Inc. has closed its previously announced $25.7 million bought deal public offering, strengthening the company’s ability to advance its two flagship gold projects in Canada. The offering, conducted pursuant to a final short form prospectus dated November 19, 2024, included a partial exercise of the underwriters’ over-allotment option.

Offering Details

The financing included three categories of units:

• 4,793,000 charitable flow-through units priced at C$1.565 per unit.

• 4,167,000 flow-through units priced at C$1.32 per unit.

• 11,518,860 hard dollar units priced at C$1.10 per unit.

Each unit comprises one common share and one-half of a common share purchase warrant. Each warrant entitles holders to acquire one common share at an exercise price of C$1.54 for two years following the closing date.

Use of Proceeds

The funds will be allocated as follows:

• Hard Dollar Units: Non-flow-through operating expenses and general corporate purposes.

• Charitable Flow-Through Units: Exploration activities at the Tower Gold Project in the Timmins Mining Camp.

• Flow-Through Units: Exploration at both the Tower Gold Project and the Colomac Gold Project in the Northwest Territories.

Key Participants and Underwriting

The offering was led by Paradigm Capital Inc., with a syndicate of underwriters that included SCP Resource Finance LP, BMO Capital Markets, Haywood Securities Inc., National Bank Financial Inc., Stifel Nicolaus Canada Inc., and Velocity Trade Holdings Ltd.

Prominent investor Eric Sprott participated in the offering, purchasing Hard Dollar Units through 2176423 Ontario Ltd. Additionally, certain officers and directors of the company acquired 186,540 Hard Dollar Units.

The underwriters received a cash commission and were issued 614,365 broker warrants exercisable at C$1.10 per share until November 26, 2026.

Project Advancements

The funds will accelerate progress at STLLR’s two cornerstone projects:

1. Tower Gold Project: A long-life, large-scale gold development opportunity in Ontario’s Timmins Mining Camp.

2. Colomac Gold Project: A northern development project with exploration potential near Yellowknife, Northwest Territories.

Strategic Growth

This financing positions STLLR Gold to drive exploration and development activities while maintaining financial stability. The successful completion of this bought deal reflects strong market confidence in the company’s strategic vision and project portfolio.

Tags: Northern Ontario / Deals & Financial / Gold / All Articles