Storm Exploration Inc. (TSXV: STRM) has closed a non-brokered private placement, issuing 8,000,000 units at $0.40 per unit for total gross proceeds of $3.2 million, according to a company statement.

Each unit consisted of one common share and one-half of a common share purchase warrant. Each whole warrant allows the holder to acquire one additional common share at $0.55 for two years from the closing date. All securities issued are subject to a hold period until January 15, 2027.

Storm paid $24,000 in cash and issued 135,000 finder's warrants to eligible finders in connection with the offering. The company said net proceeds are intended to fund exploration drilling at its Gold Standard project and for general corporate and working capital purposes.

Eric Sprott, through 2176423 Ontario Ltd., subscribed for 5,000,000 units at an aggregate purchase price of $2,000,000. Prior to the offering, Sprott held approximately 2.7% of outstanding shares on a non-diluted basis. Following the transaction, he now beneficially owns 5,763,000 shares and 2,500,000 warrants, representing approximately 15.8% of outstanding shares on a non-diluted basis and 19.99% on a partially diluted basis. If a control person blocker is removed, his partially diluted ownership would reach approximately 21.2%.

The insider participation constitutes a related party transaction under Multilateral Instrument 61-101. Storm said it is relying on exemptions from formal valuation and minority shareholder approval requirements, as neither the fair market value of the units issued to Sprott nor the consideration paid exceeds 25% of Storm's market capitalization.