Sanatana Resources closes Gold Strike Two acquisition, Yukon

Sanatana Resources Inc. [TSXV: STA] has closed its previously announced acquisition of the Gold Strike Two Project, Yukon Territory. The acquisition of the project was completed pursuant to a quartz claim purchase agreement dated May 5, 2025, with Lireca Resources Inc.

Peter Miles, CEO, commented: “We are pleased with the completion of the LIFE offering and the concurrent private placement and the strong interest the private placements received in the market. The acquisition of the Gold Strike Two project positions Sanatana as one of the few publicly traded companies with a prospective land position in the Rogue plutonic complex region, which has received significant industry recognition from the adjacent Snowline Gold Corp. recent Valley discovery.”

John Fiorino, principal of the Florin Group, commented: “The Florin Group is pleased to have closed the transaction and looks forward to engaging in further discussions with Sanatana’s management to explore possible additional mineral property transactions, identifying opportunities where our complementary strengths can drive mutually beneficial transactions.”

As consideration for the transaction, Sanatana paid cash consideration of $250,000 on closing. Under terms of the definitive agreement, a further $250,000 is held in escrow and will be payable to the Florin Group within 90 days of closing. The payment date of the escrowed funds is subject to acceleration if Sanatana raises $300,000 or more in equity or debt financing within 90 days post-closing.

Additionally, Sanatana issued six million common shares to Lireca on closing. The consideration shares were issued pursuant to a prospectus exemption and are subject to a statutory restricted period ending on Oct. 5, 2025. As a result of the issuance of the consideration shares, Lireca became an insider of the company pursuant to Canadian securities laws and will file an early warning report in accordance with the requirements of NI 62-104 (Take-Over Bids and Issuer Bids).

The project is subject to a 3% net smelter return royalty, an annual advance royalty payment and a bonus payment.

Under the definitive agreement, Lireca has the right, but not the obligation, to nominate one director to the company’s board of directors. No finder’s fee was paid in connection with the transaction.

In connection with the transaction, Sanatana concurrently closed two non-brokered private placements for cumulative gross proceeds of $1.38 million from the sale of 13.8 million units of the company at a price of 10 cents per unit.

A total of 3.66 million units were offered to investors under the listed issuer financing exemption under Part 5A of NI 45-106 (Prospectus Exemptions), and 10.14 million units are offered under the concurrent private placement offering. The minimum amount for the offerings was the full amount of $1.38 million, which included a 15% overallotment ($180,000), which was exercised in full.

Each unit is composed of one common share in the capital of the company and one share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 12 cents per warrant share until June 4, 2026. The warrants are non-transferable.

The warrants are subject to an acceleration clause whereby, if the closing price of the shares of the company on the TSX Venture Exchange is equal to or exceeds 25 cents for 10 consecutive trading days (with the 10th such trading date hereafter referred to as the eligible acceleration date), the expiry date shall accelerate to the date which is 30 calendar days following the date a news release is issued by the company announcing the reduced warrant term, provided, no more than five business days following the eligible acceleration date: the news release is issued; and notices are sent to all warrant holders.

The concurrent offering was completed on the same terms as the LIFE offering for 10.14 million units for gross proceeds of $1.14 million. Securities issued from the sale of units under the concurrent offering are subject to a four-month-and-one-day hold period from the date of issue.

In connection with the offerings, Sanatana was permitted to pay a cash commission finder’s fee of up to 5% to eligible arm’s-length parties in accordance with the policies of the TSXV in consideration for their efforts in introducing subscribers to the company, as set out in the offering document. The company did not pay any finders’ fees in connection with the offerings.

Insiders of the company subscribed for 40,000 units under the LIFE offering and 1.51 million units under the concurrent offering.

The company intends to use the net proceeds from the offerings to satisfy the cash consideration for the transaction; for general working capital expenses; and for exploration expenses for the project. Under the terms of a $200,000 secured promissory note the company issued on December 31, 2024, the company must repay the promissory note in full if it raises at least $800,000 in debt or equity financing. Due to the offerings, the promissory note will require repayment or conversion of the note in full. The promissory note is held by an affiliate of Florin Group. A full breakdown of the net proceeds from the offerings can be found in the offering memorandum.