Stuhini Exploration Renews Option on Ruby Creek Molybdenum Project

Vancouver-based Stuhini Exploration Ltd. has decided to renew its Ruby Creek molybdenum project agreement on the second anniversary of its option with Global Drilling Solutions Inc., based on positive geological results from its 2021 exploration work and the continuous increase in molybdenum prices over the past 17 months.

The Ruby Creek property is in an area referred to as the Atlin gold camp, the second largest placer gold producer in British Columbia with reported gold production of over 600,000 ounces. Stuhini can earn a 100% interest in Ruby Creek by issuing up to 7.3 million shares and paying up to $1.06 million in cash over four years. Stuhini exercised its one-year option commitment on Dec. 30, 2020, to issue 1.25 million shares to Global Drilling. Stuhini Exploration said it has extended its option on the Ruby Creek molybdenum property, entitling it to a 100% interest in the project.

The second-anniversary option commitment consists of 1.75 million shares of stock and a cash payment of $120,000. In lieu of the cash payment, Global Drilling has agreed to accept an unsecured promissory note in the amount of $120,000, a non-interest-bearing six-month term loan.

Ruby Creek molybdenum project covers 28,631 hectares located 14 km east of Atlin, British Columbia and hosts 48 distinct well-documented occurrences, 16 of which are gold-related, with seven significant gold deposit streams. The property also hosts the historic Ruby Creek molybdenum resource. Stuhini has an option to acquire a 100% interest in the project subject to a 1% net smelter royalty.

Stuhini Exploration Ltd is a precious metals exploration company managed by a team with a successful entrepreneurial track record in both the mineral exploration and commercial sectors. Stuhini is focused on Western Canada where the Company controls approximately 316 square kilometers of potential mineral rights on 2 projects. Ruby Creek, the flagship project in northern British Columbia, where 100% interest is available, and the Que project in the Yukon, where 100% interest is available.