Stelmine Canada Ltd.
TSX VENTURE : STH

Stelmine Canada Ltd.

May 25, 2017 08:53 ET

Stelmine completes the first $750,000 tranche of a private placement with investors including institutional funds

QUEBEC, QUEBEC--(Marketwired - May 25, 2017) - Stelmine Canada Ltd. ("Stelmine" or the "Company") (TSX VENTURE:STH) announced today the closing of the first tranche of a non-brokered private placement concluded with investors including institutional funds.

The private placement (the "Placement") consists in the issuance of a maximum of 4,464,285 units (the "Units") at a price of $0.28 per unit, for total maximum placement of $1,250,000. Each Unit is composed of one (1) common share of Stelmine ("Share") and one half (1/2) warrant, each warrant entitling its holder to subscribe to one (1) Share at a price of $0.35 per Share during an 18-month period.

The first tranche of the Placement consisted in the issuance of 2,678,568 Units for a total placement of $750,000.

The following funds participated in the Placement, for a total amount of $612,800: CDPQ-Sodémex, Capital croissance PME II SEC, SIDEX (including $100,000 through its « Action-Terrain 2017 » program), and Société de développement de la Baie-James (SDBJ).

"I am very pleased with this first participation by these important institutions in Stelmine's development", said Isabelle Proulx, the Company's President and CEO. "This financing will allow our company to initiate its work program during the summer of 2017."

Four (4) insiders of the Company participated to this Placement for proceeds of $137,200 (18.29% of the Placement). These insiders subscribed to the Units under the same terms as the other investors. The participation of these insiders is exempt from the formal valuation and shareholder approval requirements provided under Regulation 61-101 respecting Protection of Minority Holders in Special Transactions ("Regulation 61-101") in accordance with sections 5.5(a) and 5.7(a) of said Regulation 61-101. The exemption is based on the fact that the market value of such participation or the consideration paid by each such insider does not exceed 25% of the market value of the Company.

All securities issued in connection with this Placement are subject to a hold period of four months and one day. The Placement is subject to the approval of the TSX Venture Exchange. Stelmine has not filed a material change report in the 21 days preceding the Placement.

The proceeds of this Placement will be used for the Company's operating costs and working capital.

About Stelmine

Stelmine is a junior mining exploration company and its activities are located in the Province of Québec. Stelmine holds 707 claims spanning 368 km2 on the eastern part of the Opinaca metasedimentary basin, which contains zones with a high potential for gold deposit discovery in geological contexts similar to the one leading to discovery of the Éléonore Mine. Its capital stock consists of 18,353,884 issued and outstanding shares for a current market capitalization of $5 million. Following the closing of the first tranche of the Placement, 21,078,168 Shares are issued and outstanding.

About Caisse de dépôt et placement du Québec

Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2016, it held $270,7 billion in net assets. As one of Canada's leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure and real estate. Through its CDPQ Sodémex mining portfolio, la Caisse contributes to the development of Québec's mining industry by acquiring interests in junior mining companies and mining producers active in Québec.

About CCPME

CCPME is a fund jointly set up by the Caisse de dépôt et placement du Québec and by Capital Régional et Coopératif Desjardins for the purpose of supporting the economic development of Québec businesses and encouraging their growth. Desjardins Venture Capital Inc. acts as the manager of CCPME.

About the Société de développement de la Baie-James

Created in 1971 by the James Bay Region Development Act, the SDBJ's mission is to promote the James Bay territory's economic development and the development and use of its natural resources, other than hydroelectric resources, which are Hydro-Québec's responsibility, from a sustainable development perspective. It can also generate, support and participate in projects for these purposes. www.sdbj.gouv.qc.ca

Forward-Looking Statements

The statements set forth in this press release, which describes Stelmine's objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of security legislation. Positive or negative verbs such as "believe", "can", "shall", "intend", "expect", "estimate", "assume" and other related expressions are used to identify such statements. Stelmine wishes to state that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Stelmine's actual results and the projections or expectations set forth in the forward-looking statement include the risk that the Company does not complete the Placement as anticipated, and such other risks as described in detail from time to time in the reports filed by Stelmine with security authorities in Canada. Unless otherwise required by applicable securities laws, Stelmine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of the new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of this release.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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