Highlights

  • Sanatana acquires Gold Strike Two Project from LIRECA Resources for cash and shares, with additional payment held in escrow.
  • The company completes dual private placements totalling CAD1.38 million, including LIFE and concurrent offerings.
  • Funds to support project exploration, working capital, and repayment of outstanding debt.

Sanatana Resources Inc. (TSXV: STA) is a Canadian mineral exploration company listed on the TSX Venture Exchange. Headquartered in Vancouver, the company focuses on exploration-stage properties with potential for mineral discoveries in Canada.

The company has completed the acquisition of the Gold Strike Two Project, following the execution of a quartz claim purchase agreement with LIRECA Resources Inc. The agreement, signed on May 5, 2025, marks a strategic expansion of Sanatana's presence in the Rogue Plutonic Complex region of Yukon Territory.

Under the terms of the transaction, Sanatana paid CAD 250,000 in cash at closing and issued 6,000,000 common shares to LIRECA. An additional CAD 250,000 is held in escrow and is payable within 90 days, contingent on financing conditions. LIRECA, because of receiving the consideration shares, becomes an insider of the company and is required to file disclosures in compliance with Canadian securities regulations.

The acquisition coincided with the closing of two non-brokered private placements that raised gross proceeds of CAD 1,380,000. These included the Listed Issuer Financing Exemption (LIFE) offering of 3,660,000 units and a concurrent offering of 10,140,000 units, both priced at CAD 0.10 per unit. Each unit consists of one common share and one share purchase warrant, exercisable at CAD 0.12 until June 4, 2026. The warrants are subject to an acceleration clause if the company's share price reaches or exceeds CAD 0.25 for 10 consecutive trading days.

The LIFE offering was conducted across all Canadian provinces except Quebec and included insider participation of 40,000 units. The concurrent offering also saw insider involvement with 1,510,000 units purchased. While eligible to pay finder’s fees under TSX Venture Exchange policies, the company did not incur any such payments in connection with these offerings.

According to disclosures, the company intends to allocate net proceeds from the financing toward the payment obligations related to the acquisition, general corporate purposes, and exploration activities at the Gold Strike Two Project. Furthermore, the proceeds triggered repayment obligations on a CAD 200,000 secured promissory note issued in December 2024, held by an affiliate of Florin Group. This note is now subject to full repayment or conversion due to the capital raised exceeding the threshold condition of CAD 800,000.