Flow-Through Funding Boosts Yukon Exploration Beyond Expectations

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Stillwater Critical Minerals Corp. (PGE:TSX.V; PGEZF:OTCQB; J0G:FSE) has announced the successful closing of its non-brokered private placement of flow-through units, originally announced on January 21, 2025. The offering resulted in gross proceeds of CA$375,010 through the issuance of 2,500,066 units at CA$0.15 per unit. Each unit includes one flow-through share and one-half of one non-flow-through transferable warrant. A full warrant allows the holder to purchase one common share at CA$0.225 per share for up to 24 months, with an acceleration clause triggered if the shares trade above CA$0.34 for 20 consecutive days.

Proceeds from this offering will be used to fund exploration expenses at the Kluane Critical Minerals Project in Yukon, Canada, qualifying as "flow-through critical mineral mining expenditures" under the Income Tax Act of Canada. Notably, company insiders, including directors and officers, subscribed for 201,000 units, contributing CA$30,150. These transactions are exempt from formal valuation and minority approval under Multilateral Instrument 61-101, as they represent less than 25% of Stillwater's market capitalization.

In connection with the private placement, Stillwater paid CA$9,299 in commissions and issued 61,994 finder's warrants with terms identical to the offering warrants. The securities are subject to a four-month hold period and have not been registered under U.S. securities laws, restricting their sale in the United States without appropriate exemptions.

Mining Sector Strengthens with Growing Demand and Strategic Developments

According to Ahead of the Herd on January 27, investor optimism surrounded gold and silver due to concerns over geopolitics and government debt. Adrian Ash, director of research at BullionVault, highlighted that "investors are optimistic about gold and silver for 2025 because they are so pessimistic on geopolitics and government debt." This sentiment was bolstered by central banks remaining strong buyers of gold, driven by diversification strategies amid economic uncertainties.

Excelsior Prosperity on February 1 emphasized gold's strong performance, with the metal reaching new all-time highs. The report stated, "Gold broke out to new all-time highs this week," driven by factors such as central bank buying, inflation concerns, and geopolitical tensions. Silver also saw gains, benefiting from industrial demand and safe-haven appeal.

Chris Temple of The National Investor expressed a positive outlook on Stillwater Critical Minerals Corp. on January 8, reaffirming his Buy recommendation

On February 4, Mining Weekly noted that base metals like copper and zinc saw price increases after the U.S. delayed tariffs on Canada and Mexico, which eased trade tensions and weakened the U.S. dollar, making commodities more attractive. The report stated, "Copper, an industrial bellwether, extended gains amid the reversal in sentiment," reflecting the sector's sensitivity to geopolitical shifts.

In a February 10 video from the CME Group, Jeffrey Christian of CPM Group discussed the latest movements in gold and silver markets. Gold surpassed US$2,900, while silver reached as high as US$33.33 before settling around US$32.97. Christian attributed these gains to heightened political and economic uncertainties, including inflationary pressures, recession concerns, and geopolitical risks. He noted strong investment demand for gold, particularly in the U.S., driven by interest from jewelry fabricators, electronics manufacturers, and investors. Despite expectations of potential short-term profit-taking, Christian anticipated sustained support for gold around US$2,750. For silver, he projected possible price tests near US$34–35, buoyed by healthy fabrication and investment demand, though not as robust as gold's. He also highlighted significant metal transfers from London to the U.S., driven by stronger American demand and speculative trading.

Positive Outlook for Stillwater Critical Minerals Amid Growing Industry Support

Chris Temple of The National Investor expressed a positive outlook on Stillwater Critical Minerals Corp. on January 8, reaffirming his Buy recommendation. Temple highlighted the company's substantial existing polymetallic resource, with nearly half of it comprised of nickel, as a key strength. He pointed to the strong backing from Glencore and increasing attention from both the industry and government, factors he believes will gain further momentum under the incoming U.S. administration.

While acknowledging that Stillwater faces development challenges, including a potential block cave mining approach and evolving strategies for metal recovery, Temple emphasized that the company's positives significantly outweigh these hurdles. He noted that CEO Mike Rowley remains confident in the company's cost structure, which is expected to be more favorable than some of its industry peers. Temple's renewed BUY recommendation reflects his anticipation of a recovery following tax-related selling pressures, alongside supportive policy developments that could further enhance the company's prospects.

Key Catalysts for Stillwater's Kluane Project

Stillwater's investor presentation highlights several upcoming catalysts for the Kluane Project. The gross proceeds from this placement will support extensive exploration activities, including drilling and trenching at high-priority targets identified through previous geophysical and geochemical surveys.

The Ellen property and Spy claim block remain focal points, with historical drill results showing significant critical minerals mineralization.

Further, the company aims to systematically advance multiple zones to drill-ready status, enhancing the project's resource base. Strong copper-gold soil anomalies and large geophysical conductors, such as the nearly one-kilometer-long target at the Ellen property, underscore the project's potential. With additional field programs planned for 2025, including ground-based geophysics and UAV imagery, Stillwater seeks to expand its mineral resource estimates and strengthen its position within the critical minerals sector.

Ownership and Share Structure

Management and insiders own approximately 20% of Stillwater, according to the company.

Executive Chairman and Director Gregory Shawn Johnson owns 2.86%, President and CEO Michael Victor Rowley owns 2.56%, Independent Director Gregor John Hamilton owns 1.65%, Independent Director Gordon L. Toll owns 0.44%, and Vice President of Exploration Daniel F. Grobler owns 0.23%, according to Reuters.

Institutions own approximately 25% of the company, high net-worth investors own about 37%, and Glencore Canada Corp. owns 15.4%. About 18% of the company's shares are in retail, Stillwater said.

There are about 227 million shares outstanding with 174.5 million free float traded shares, while the company has a market cap of CA$36.33 million and trades in a 52-week range of CA0.1000 - CA0.2200.