Abraplata increases private placement to $18-million
Abraplata Resource Corp. has increased the size of its previously announced non-brokered private placement of units from $15-million to $18-million. Upon closing of the offering, the company will issue up to 66,666,667 units at a price of 27 cents per unit. Each unit will consist of one common share in the equity of the company and one-half of one share purchase warrant. Each warrant will entitle the subscriber to purchase one additional common share at a price of 40 cents until the second anniversary of the closing date of the offering.Read More
The proceeds of the offering will be used for exploration of the company’s mineral properties and general corporate purposes.
The offering is scheduled to close on or about Aug. 27, 2020, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals of the TSX Venture Exchange.
Fura Gems to acquire Australian mining company
Fura Gems Inc. has entered into a share sale agreement through its wholly owned Australian subsidiary, Capricorn Sapphire Pty. Ltd., with Mosley Mining Pty. Ltd. (the vendor), pursuant to which the company will acquire all of the issued and outstanding shares of Great Northern Mining Pty. Ltd. (the target), a mining company located in Australia. The assets of the Target consist of 73 mining leases (the “Tenements”), each located in Australia, as well as certain buildings, plants, fixtures, tools, and other equipment related to the Tenements.Read More
As consideration for the Acquisition, Fura agreed to pay A$2,987,933 (approximately C$2,860,632) to the Vendor, subject to certain adjustments, and less (i) an amount payable to a bank to release a security interest on certain of the Target’s assets, and (ii) an amount equal to any royalties that become payable by the Target in respect of mining activities conducted on the Tenements prior to completion. In accordance with the Share Sale Agreement, on or about the date that the agreement was signed, Fura paid a portion of the consideration (A$293,093 (approximately C$280,465)) as a deposit to be released to the Vendor upon completion of the Acquisition.
The Acquisition is an arm’s length transaction for the purposes of the policies of the TSX Venture Exchange (“TSXV”) and the Company understands that the Acquisition qualifies as an “Exempt Transaction” under TSXV Policy 5.3. Fura is not paying any finder’s fees in connection with the Acquisition. The closing of the Acquisition is subject to the satisfaction of customary conditions precedent; however, the Foreign Investment Review Board of the Australian Government has already indicated that it has no objection to the Acquisition. Closing of the Acquisition is expected to occur in early to mid-August 2020.
Highgold Mining private placement
The TSX Venture Exchange has accepted for filing documentation with respect to a brokered (bought) and non-brokered (NB) private placement announced on July 6, 2020, and July 13, 2020, respectively.Read More
Number of shares: 7,976,975 bought common shares and 446,500 NB common shares
Purchase price: $1.73 per share
Number of placees: 24 placees (including one placee participating in NB portion)
Agents’ fees: Cormark Securities Inc., $395,029.77 cash; Canaccord Genuity Corp., $98,326.19 cash; Stifel Nicolaus Canada Inc., $65,550.79 cash; Haywood Securities Inc., $65,550.79 cash; Sprott Capital Partners LP, $65,550.79 cash
Radisson to acquire New Alger from Renforth
Radisson Mining Resources Inc. and Renforth Resources Inc. have signed a binding agreement pursuant to which Radisson will acquire a 100-per-cent interest in Renforth’s New Alger gold property and enter into a long-term strategic relationship through a 9.6-per-cent equity investment by Radisson in Renforth. The relationship aims to leverage regional synergies and unlock significant value for shareholders of both companies from one of the most prospective mining camps in the world.Read More
The transaction will significantly expand Radisson’s claims in the Bousquet-Cadillac mining camp, which will create scale, and which Radisson believes will enhance its exploration potential and increase O’Brien’s appeal to investors and larger producers. In addition, the deal significantly bolsters Renforth’s balance sheet and allows for a significant expansion in planned exploration spending aimed at realizing the full potential of its attractive project portfolio that includes Parbec, Nixon Bartleman, Malartic West, Surimeau and Denain-Pershing. The transaction is expected to provide for significant benefits to both Renforth and Radisson and their respective shareholders.
- Radisson will acquire a 100-per-cent interest in New Alger for the following consideration:
- 12 million Class A common shares of Radisson will be issued to Renforth upon closing of the transaction;
- $500,000 in cash upon closing of the transaction;
- A $1.5-million cash contingent payment, payable on the earlier of the announcement of commercial production at New Alger, a sale of New Alger for more than $40-million or a change of control of Radisson.
- Renforth plans to complete a concurrent financing to raise approximately $3.24-million in cash proceeds, which will be backed by a 9.6-per-cent strategic investment by Radisson into Renforth:
- The financing is anticipated to be a charity flow-through financing, pursuant to which Renforth plans to issue 24 million flow-through shares at 13.5 cents per share, which would represent a 145-per-cent premium to Renforth’s most recent financing.
- The potential transaction value to Renforth (including contingent payments) is estimated at approximately $9.5-million, based on the three-day volume-weighted average share price for Radisson.
Radisson anticipates that its strong cash position will be sufficient to both complete the transaction and to expand the continuing drill program to include the newly acquired claims. As of July 31, 2020, the company estimates a total liquidity position of approximately $8.5-million including:
- A liquidity position of approximately $3.3-million, which includes proceeds from the recent sales of non-core securities and receivables;
- Anticipated liquidity of approximately $700,000 from the exercise of in-the-money options and warrants by certain holders, including the strategic adviser, chairman, chief executive officer, president and directors, who have indicated their intention to exercise such securities;
- Funds reserved for exploration and evaluation of approximately $4.5-million, which should facilitate an expansion in the continuing 60,000 m drill program to over 75,000 m, permitting additional drilling in 2021.
“We are delighted to announce this partnership with Renforth and strongly believe this will prove to be a win-win situation for both companies. Considering our significant holdings in one of the most prolific gold mining camps, our interests are very much aligned, making this collaboration very significant. Nicole and her team have done a commendable job over the last several years. We look forward to building on her team’s work at New Alger while gaining exposure to the other assets in the Renforth portfolio, through our equity interest in Renforth,” commented Mario Bouchard, chief executive officer of Radisson Mining Resources.
“This transaction delivers to Renforth’s shareholders a significant return on our investment to date in New Alger. This repositions Renforth as extremely well funded, with cash and securities, to allow us to continue exploration on several of our properties, including our Parbec open-pit-constrained gold resource. Renforth will not need to carry out any additional, dilutive funding transactions for the foreseeable future. I believe getting out from under the need to repeatedly raise money, and dilute shareholders, is transformative for Renforth,” commented Nicole Brewster, president and chief executive officer of Renforth Resources.
Benefits to Renforth shareholders:
- Attractive price realized for New Alger while retaining a 5.7-per-cent equity interest in Radisson posttransaction for continued exposure to upside from the combined O’Brien and New Alger properties:
- Exposure to the continuing 60,000 m drill program at O’Brien as well as the recently completed 1,782 m drill program at New Alger for which assays are pending;
- Additional exposure to any future exploration success by Radisson at the O’Brien and New Alger properties;
- A significant capital infusion at a significant premium to market, which, when completed, will increase Renforth’s cash position to approximately $4.7-million pro forma the transaction, which represents a 385-per-cent increase from pretransaction levels:
- This does not include warrants and options that are in-the-money (based on the latest closing price), which, if exercised, could generate additional cash proceeds to Renforth of approximately $1.8-million in the future;
- Renforth is expected to be well financed to undertake significant work programs at its other assets, which should help Renforth materially enhance and upgrade its attractive project portfolio;
- The opportunity to leverage its partnership with Radisson for increased institutional/retail exposure and an enhanced capital markets profile, which will enable Renforth to build on the positive momentum this year.
Benefits to Radisson shareholders:
- Consolidates the adjacent O’Brien and New Alger projects in the Bousquet-Cadillac mining camp, which will add scale and is expected to enhance the resource upside and significantly increase the attractiveness of Radisson’s high-grade O’Brien project. The transaction should:
- Expand Radisson’s claims to cover 5,839 hectares, representing a ninefold increase from 637 hectares prior to the transaction;
- Expand Radisson’s prospective strike length along the Cadillac Break to approximately six kilometres from 4.5 km prior to the transaction. This includes 3.2 km to the east and 2.7 km west of the historic O’Brien mine (shaft No. 2), which has been the highest-grade producing gold mine in Quebec;
- Provide Radisson shareholders with exposure to upside from the Discovery veins, located approximately 250 m south of the Cadillac Break and hosted in the Pontiac sediments. The Discovery veins have been traced by drilling for approximately 275 m along strike and to a depth of 120 m, within a sampled strike length of approximately 500 m. Mineralization remains open for expansion to the east, west and at depth;
- Allow Radisson to build on the technical work completed by Renforth (including 15,759 m of drilling to date) leading to the recent National Instrument 43-101 resource update at New Alger (May 12, 2020);
- Radisson is expected to hold a 9.6-per-cent equity interest in Renforth, which will provide shareholders with upside exposure from Renforth’s other assets located in the same prospective district, including Parbec, Nixon Bartleman, Malartic West, Denain-Pershing and Surimeau:
- Following the transaction, Renforth will be well financed to undertake significant work programs at its key assets;
- Radisson anticipates that its strong cash position will be sufficient to both complete the transaction and to meaningfully expand the continuing drill program to include the newly acquired claims.
The New Alger project
The New Alger project is a highly prospective land package adjacent of Radisson’s O’Brien project to the west and along strike. In June, 2020, Renforth Resources published an updated mineral resource estimate and technical report.
The New Alger gold deposit has a pit-constrained indicated resource of 61,500 ounces and inferred resource of 123,300 ounces. In addition, it has an out-of-pit indicated resource of 1,100 ounces and inferred resource of 64,700 ounces. The current resource covers a strike extent of approximately 1,400 m and an average depth extent of approximately 300 m on the Cadillac Break. The deposit remains open at depth both on the Cadillac Break and the Discovery veins, and along strike to the east and west on the Discovery veins.
NEW ALGER CURRENT RESOURCE ESTIMATE Area Classification Cut-Off Au Tonnes Au Au (g/t) (k) (g/t) (koz) Pit constrained indicated 0.32 1,016 1.88 61.5 inferred 0.32 2,322 1.65 123.3 Out of pit indicated 1.44 19 1.81 1.1 inferred 1.44 904 2.23 64.7 Total indicated 0.32 + 1.44 1,035 1.88 62.6 inferred 0.32 + 1.44 3,226 1.81 188.0 (1) Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues. Extracted from "Updated Mineral Resource Estimate and Technical Report on the New Alger Gold Property, Abitibi-Temiscamingue Region, Northwestern Quebec, Canada," dated June 23, 2020, with an effective date of May 1, 2020. (2) The inferred mineral resource in this estimate has a lower level of confidence than that applied to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of the inferred mineral resource could be upgraded to an indicated mineral resource with continued exploration. (3) The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council. (4) Historically mined areas were depleted from the Mineral Resource model. (5) The pit-onstrained tgold cut-off grade of 0.32 gram per tonnne gold was derived from $1,450 (U.S.) per ounce Au price, 0.75 U.S. dollar/Canadian dollar exchange rate, 95-per-cent process recovery, $17 per tonne process cost, and $2 per tonne general and administrative cost. The constraining pit optimization parameters were $2.50/t mineralized mining cost, $2/t waste mining cost, $1.50/t overburden mining cost and 50-degree pit slopes. (6) The out-of-pit Au cut-off grade of 1.44 g/t Au was derived from $1,450 (U.S.) per ounce Au price, 0.75 U.S. dollar/Canadian dollar exchange rate, 95-per-cent process recovery, $66/t mining cost, $17/t process cost and $2/t G&A cost. The out-of-pit mineral resource grade blocks were quantified above the 1.44 g/t Au cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Additionally, only groups of blocks that exhibited continuity and reasonable potential stope geometry were included. All orphaned blocks and narrow strings of blocks were excluded. The long-hole stoping with backfill method was assumed for the out-of-pit mineral resource estimate calculation.
Recent results at New Alger
Recent results at New Alger include visible gold observed in several instances within the areas of the blasting work recently completed on the Discovery veins.
Renforth blasted in four areas of the about 275 m stripped portion of the Discovery vein gold system. These areas were chosen based upon results obtained in each area via comprehensive surface channel and grab sampling carried out by Renforth between 2014 and 2019. Drilling at New Alger is complete for this program, with three infill holes completed on the Discovery veins and five stepout holes to the west, for a total stepout of 300 m west outside of the stripped area of the Discovery veins. In addition, one hole was drilled in the mine area, on the Cadillac Break. The company is currently awaiting receipt of assays.
The transaction remains subject to customary conditions including the entry into a definitive agreement, completion of satisfactory due diligence and receipt of TSX Venture Exchange approval. The acquisition is expected to close before the end of Q3 2020, after which the proposed Renforth financing is expected to close.
Richard Nieminen, PGeo, exploration manager, is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the technical information in this press release relating to Radisson.
Brian H. Newton, PGeo, is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the technical information in this press release relating to Renforth.
About Radisson Mining Resources Inc.
Radisson is a gold exploration company focused on its 100-per-cent-owned O’Brien project, located in the Bousquet-Cadillac mining camp along the world-renowned Larder-Lake-Cadillac break in Abitibi, Que. The Bousquet-Cadillac mining camp has produced over 21 million ounces of gold over the last 100 years. The project hosts the former O’Brien mine, considered to have been the Abitibi greenstone belt’s highest-grade gold producer during its production period (1,197,147 metric tonnes at 15.25 g/t Au for 587,121 ounces of gold from 1926 to 1957).
Serengeti completes phase 1 exploration at Kwanika
Phase 1 exploration on Serengeti Resources Inc.’s Kwanika copper-gold project has been completed, and phase 2, which includes drilling, is to begin shortly. The Kwanika project is approximately 26,000 hectares, held by Kwanika Copper Corp. (KCC) and located in the northern Quesnel Trough of British Columbia which hosts numerous porphyry copper-gold deposits.Read More
The 2020 drill program is fully funded and designed to expand the known resource which is open in several directions and provide a deep test for the potential of a gold enriched target first identified from drilling in 2016 as well as testing several other ideas.
David Moore, president and chief executive officer of Serengeti, commented: “We are pleased to be back drilling at Kwanika which has the potential to expand the resource and test a couple of potential game changing ideas. We’ve had a nice bounce in the price of copper based on market fundamentals and of course the move in the price of gold means that a lot of attention is being refocused on the resource space, which is great to see”.
Kwanika Phase 2 exploration including approximately 3,600 metres of diamond drilling at the Central Zone deposit, South Zone deposit, and several other targets is scheduled to begin shortly. The Kwanika camp facility is being re-opened with drilling expected to start on or about August 12th. Drill targets include i) the Central Zone West Deep, where the copper-gold system remains open at depth; ii) Central Zone / Central Fault South, where the final drill hole of the 2018 program encountered strong mineralization near surface and open along strike; iii) Central Zone / Central Fault North, where drilling in 2016 encountered a broad halo of anomalous gold above a deep geophysical target and; iv) the western edge of the South Zone deposit, where the highest grades may be enriched along a controlling structure. Refer to Serengeti’s updated Corporate Presentation for details on targets at Kwanika.
Completion of Phase 1
IP surveying totalling 15 line km was recently completed over two target areas on the Kwanika claim block to help define future drilling targets. Three wide spaced lines in the first ever IP survey over the Rottacker target located at the south end of the Kwanika claim block, 25 km south of the Central Zone, have identified a 1km long moderate chargeability target associated with anomalous copper-gold geochemistry from prior sampling by Serengeti in 2014. Additional sampling is planned later this season to follow up this area which shares many geological similarities to the Central Zone. In addition, two specific targets immediately to the north and south of the Central Zone were also surveyed and the results are being integrated with the extensive database for the deposit area to assist in drill targeting.
Serengeti is sole funding this year’s Kwanika program. As a consequence, the Company’s ownership of KCC will increase to approximately 67%, with POSCO International Corp. holding approximately 33 per cent. Prior to the commencement of field activities, Serengeti’s and its majority owned subsidiary Kwanika Copper Corporation’s (“KCC”) combined cash position was in excess of $2.3 million. These funds are sufficient to fund the planned 2020 program, along with general and administrative expenses for the balance of the year.
The field and analytical programs described herein were supervised by Serengeti Resources staff and the technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101, and reviewed by the company’s qualified person, David W. Moore, P.Geo., President and CEO of Serengeti Resources, who has supervised the preparation of, and approved, the scientific and technical information in the news release.