Sterling Metals Announces Upsize to Private Placement of Units

Rhea-AI Summary

Sterling Metals Corp (TSXV:SAG, OTCQB:SAGGD) has announced an increase in its non-brokered private placement offering from its previous announcement on March 4, 2025. The upsized offering will now consist of up to 5,200,000 units at $0.25 per unit, aiming to raise aggregate gross proceeds of up to $1,300,000.

Each unit comprises one common share and one-half of one Common Share purchase warrant. Each whole warrant allows holders to acquire one Common Share at $0.40 per share within two years of the offering's closing. The company may pay eligible finders a 6% cash commission and 6% broker warrants.

The proceeds will be used for general working capital purposes. The offering's closing is subject to regulatory approvals, including TSX Venture Exchange approval. CEO Mathew Wilson noted strong demand from existing shareholders, expressing confidence in the Copper Road Project's potential as they prepare for their inaugural drill program.

Positive

• Increased offering size indicates strong investor demand
• Secured additional working capital of up to $1.3 million
• Strong support from existing shareholders demonstrates confidence in company's vision

Negative

• Potential dilution for existing shareholders
• Additional shares and warrants may create downward pressure on stock price
• 6% finder's fees reduce net proceeds available to company

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, ON / ACCESS Newswire / March 12, 2025 / Sterling Metals Corp. (TSXV:SAG)(OTCQB:SAGGD) ("Sterling" or the "Company") is pleased to announce that further to its press release on March 4, 2025, the Company has increased the size of its non-brokered private placement to up to 5,200,000 units (each, a "Unit") at a price of $0.25 per Unit for aggregate gross proceeds of up to $1,300,000 (the "Offering"). Each Unit shall be comprised of one common share (each, a "Common Share") in the capital of the Company and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant") of the Company. Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.40 per Common Share for a period of two (2) years from the closing of the Offering.

The Company may pay certain eligible persons (the "Finders") a cash commission equal to 6% of the gross proceeds of the Offering and broker warrants (each, a "Broker Warrant") equal to 6% of the number of Units issued pursuant to the Offering. Each Broker Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.40 per Common Share for a period of two (2) years from the closing of the Offering.

All securities issued pursuant to the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The net proceeds from the sale of the Units will be used for general working capital purposes. The closing of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Mathew Wilson, CEO and Director of Sterling commented, "We are encouraged by the strong demand from our existing shareholders, which has led to an upsized financing. The continued support reinforces confidence in our vision and the potential of the Copper Road Project as we embark on our inaugural drill program. With the financing expected to close by the end of March, we are now prepared to efficiently execute the initial stages of drilling and advance our understanding of this highly prospective Project."

About Sterling Metals

Sterling (TSXV: SAG)(OTCQB:SAGGD) is a mineral exploration company focused on large scale and high-grade Canadian exploration opportunities. The Company is advancing the 25,000-hectare Copper Road Project in Ontario which has past production, and multiple breccia and porphyry targets strategically located near robust infrastructure and the 29,000-hectare Adeline Project in Labrador which covers an entire sediment-hosted copper belt with significant silver credits. Both opportunities have demonstrated potential for important new copper discoveries, underscoring Sterling's commitment to pioneering exploration in mineral rich Canada.

For more information, please contact:

Sterling Metals Corp.

Mathew Wilson, President & CEO
Tel: (416) 643-3887
Email: info@sterlingmetals.ca
Website: www.sterlingmetals.ca

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.

This news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE: Sterling Metals Corp.

View the original press release on ACCESS Newswire

FAQ

What is the size and price of Sterling Metals' (SAGGD) upsized private placement offering?

Sterling Metals is offering 5,200,000 units at $0.25 per unit, aiming to raise up to $1,300,000 in gross proceeds.

What are the terms of the warrants in Sterling Metals' (SAGGD) March 2025 private placement?

Each warrant allows holders to purchase one Common Share at $0.40 for two years from the offering's closing date.

How will Sterling Metals (SAGGD) use the proceeds from the March 2025 private placement?

The net proceeds will be used for general working capital purposes.

What commissions are being offered to finders in Sterling Metals' (SAGGD) private placement?

Eligible finders may receive a 6% cash commission and 6% broker warrants of the total units issued.