STLR Stock Announces Major Financing: STLLR Gold Announces C$30 Million Financing Agreement, with participation from Eric Sprott, Agnico, and other institutions

Canadian gold mining development company STLLR Gold Inc. (Toronto Stock Exchange: STLR; OTC Markets: STLRF; Frankfurt Stock Exchange: O9D) recently announced a multi-tiered financing plan totaling C$30 million, attracting participation from several institutional investors, including renowned investor Eric Sprott.

Financing Structure Analysis: Three Main Pillars

This financing plan consists of three core components, demonstrating a diversified approach. First is a bought deal agreement with Paradigm Capital and SCP Resource Finance, under which STLLR Gold will issue two types of common shares. One is a tax-advantaged high-tier common share, with an issuance of 2.9 million shares at C$1.792 per share, raising approximately C$5 million; the other is standard common shares, with an issuance of 3.2468 million shares at C$1.54 per share, raising about C$5 million. The combined bought deal financing totals approximately C$10 million.

Second is the most flexible “best efforts” brokered private placement, with a maximum raise of C$15 million. This plan involves issuing 11.719 million common shares at C$1.28 per share, with Eric Sprott’s participation becoming a focal point of market attention. The legendary investor, known for his long-term optimism towards precious metals assets, participating in STLLR Gold’s financing signals his confidence in the company’s project prospects.

The third component involves a non-brokered private placement from mining giant Agnico Eagle Mines Limited. Agnico plans to subscribe for 3.907 million shares at C$1.28 per share, raising approximately C$5 million. After this financing, Agnico’s stake in STLLR Gold will increase to about 11%, reflecting the international mining company’s strong interest in STLLR Gold’s projects.

Use of Funds and Tax Optimization

STLLR Gold has carefully planned the use of proceeds from this financing. The C$10 million from the bought deal portion will be dedicated to Canadian mining exploration expenditures, qualifying as “flow-through mining expenses” under Canadian income tax law, enabling investors to benefit from corresponding tax credits. This arrangement is highly attractive to investors seeking tax optimization.

The C$15 million from the “best efforts” private placement and Agnico’s non-brokered private placement will be used for daily operational expenses, corporate operations, and working capital replenishment, supporting the company’s ongoing operations and strategic development.

Highlights of STLR Stock’s Three Gold Mine Projects

STLLR Gold currently operates three core projects: the Tower gold mine and Hollinger tailings project located in the Timmins mining camp, Ontario, and the Colomac gold mine located north of Yellowknife in the Northwest Territories. According to the company’s plans, these two major projects have the potential to develop into large-scale, long-cycle mining operations, with extensive exploration areas still available for development.

Timeline and Regulatory Requirements

The financing is expected to close on October 15, 2025, or on another date mutually agreed upon by the parties. All related shares will be subject to a four-month and one-day restricted trading period. The closing of the financing is contingent upon approval from the Toronto Stock Exchange and relevant securities regulators, including necessary corporate regulatory permits.

Insurance and Incentive Mechanisms

Underwriters will receive a cash commission equal to 6% of the total financing amount for the bought deal and “best efforts” private placement components. Additionally, STLLR Gold has granted the underwriters an over-allotment option, allowing them to purchase up to an additional 15% of the bought deal shares within two business days prior to closing, to cover over-subscriptions and market stabilization.

The completion of this financing will provide sufficient capital to advance STLLR Gold’s multiple gold projects, while the participation of well-known investors like Eric Sprott and Agnico sends a positive signal to the market.