Sirios closes $1.38-million first tranche of financing
Sirios Resources Inc. has closed the first tranche of a private placement for aggregate gross proceeds of $1,385,390. In connection with the offering, the corporation issued (i) 6,866,333 Quebec flow-through units of the corporation at a price of 18 cents per Quebec FT unit for an amount of $1,235,940, and (ii) 879,117 national flow-through units of the corporation at a price of 17 cents per national FT unit, for an amount of $149,450.
Read MoreEach Quebec FT unit and each national FT unit consists of one common share of the share capital of the corporation and one-half of a warrant. Each warrant will entitle the holder thereof to acquire one additional common share of the share capital of the corporation for a period of 18 months from the closing of the offering at a price of 23 cents.
All securities issued pursuant to this offering are subject to a restricted hold period of four months and a day, ending on April 12, 2021, under applicable Canadian securities legislation. The offering has received conditional approval from the TSX Venture Exchange and remains subject to the final approval of the TSX Venture Exchange. Intermediation fees totalling $74,967 were paid to intermediaries in connection with the offering.
The proceeds of this offering will be mainly used to advance an important diamond drilling program on the Cheechoo gold project. The Cheechoo property is located at Eeyou Istchee Baie James in the immediate vicinity of Newmont corporation’s Eleonore gold mine. Please see the corporation’s website for more information on this project.
M. Michel Bouchard, director of the corporation, has subscribed in the offering for a total of $15,300 or 85,000 Quebec FT units, which constitutes a “related party transaction” within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9 — Protection of Minority Security Holders in Special Transactions. However, the directors of the corporation who voted in favour of the offering have determined that the exemptions from formal valuation and minority approval requirements provided for respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair market value of the Quebec FT units issued to such insider nor the fair market value of the consideration paid exceed 25 per cent of the corporation’s market capitalization. None of the corporation’s directors have expressed any contrary views or disagreements with respect to the foregoing. A material change report in respect of this related party transaction will be filed by the corporation, but could not be filed earlier than 21 days prior to the closing of the offering due to the fact that the terms of the participation of each of the non-related parties and the related party in the offering were not confirmed.
American Manganese arranges $125,040 private placement
American Manganese Inc. intends to conduct a non-brokered private placement of 521,000 flow-through units at 24 cents per unit. Each flow-through unit consists of one flow-through common share of American Manganese and one warrant. Each warrant will be exercisable for one common share at a price of 30 cents per share for a period of two years from the warrant issuance date.
Read MoreThe proceeds will be used to finance exploration of the company’s Canadian mineral properties. All securities issued pursuant to the offering will be subject to a hold period of four months. This offering is subject to acceptance by the TSX Venture Exchange.
Omineca Mining grants options exercisable at 33 cents
Omineca Mining and Metals Ltd. has approved the grant of 3.15 million incentive stock options pursuant to the company’s stock option plan effective Dec. 11, 2020. Of that total, 1.05 million of the options were granted to directors and executive officers, with the balance being granted to consultants. The options are exercisable at 33 cents per share and, if not exercised, expire Dec. 11, 2025, subject to earlier expiration in accordance with the stock option plan and the applicable policies of the TSX Venture Exchange.
Dolly Varden agreement for Alice Arm property
The TSX Venture Exchange has accepted for filing an offer to purchase agreement dated Nov. 26, 2020, between Dolly Varden Silver Corp. and 0907105 B.C. Ltd. (the vendor), whereby the company may acquire a 100-per-cent interest in the Alice Arm lands, located in northwestern British Columbia. Consideration is $150,000 cash and $150,000 in shares priced at the greater of a 10-day simple average closing price prior to closing the acquisition and 75 cents.
Millrock completes 74North field exploration for 2020
Millrock Resources Inc., along with partner Resolution Mineral Inc., has completed field exploration activities for the year at the 64North project. The project targets large-scale gold deposits in the Goodpaster District. The claims comprising the property are adjacent to the Pogo Mine, a multi-million ounce gold mine operated by Northern Star Resources.
Read MoreMillrock President & CEO Gregory Beischer commented, “We are pleased to have been able to execute this exploration program despite the additional risk and challenge posed by COVID. A strong initial drill test of the West Pogo prospects was completed, and new drill targets were defined at other prospects on this district-scale gold project. We look forward to pending assay results and developing exploration plans for 2021.”
Highlights for 2020 include:
Corporate Matters:
- Resolution has timely expended in excess of US$5.0 million on project exploration and has indicated its intention to pay US$50,000 and issue 10 million Resolution shares to Millrock, thereby completing an initial 30% earn-in interest in the 64North Project.
West Pogo Block:
- This block is located immediately west of Northern Star’s Pogo Mine, and the Goodpaster deposit that is now being delineated by Northern Star. CSAMT geophysical surveys carried out by Millrock in 2019 identified shallow-dipping conductive zones that potentially represented gold-bearing quartz veins and surrounding alteration zones.
- High resolution airborne magnetic and ZTEM geophysical survey data was collected and used to refine drill targets.
- Road access to the Aurora target area was completed to allow year-round operations.
- Nine core holes totaling 4,778 meters were drilled at the West Pogo block adjacent to the Pogo Mine property and on strike from Pogo’s Goodpaster deposit (Aurora, Reflection, and Echo targets).
- Drilling intersected a vein system; assays from mineralized zones intersected in the last two drill holes are expected in early January.
- 137 meters of road cut and trench sampling was completed at the AT prospect on the West Pogo block; complete results are expected in January and will be evaluated.
East Pogo Block:
- Previous exploration had identified high grade gold-bearing quartz veins at the Boundary target.
- Airborne ZTEM, ground based CSAMT surveys, mapping, prospecting, and geochemical sampling was completed at the Boundary target on the East Pogo block; a strong target for planned 2021 drilling was delineated.
- The claim block was extended eastward to cover interesting geophysical features.
Eagle Block:
- Prior exploration by others had identified intrusion-hosted disseminated gold mineralization; there is demonstrated potential for deposits of similar nature to the Fort Knox Mine located near Fairbanks, Alaska.
- High resolution airborne magnetic surveys were carried out and used to develop exploration plans.
- A 22-kilometer access trail was constructed leading south from the Pogo Mine road.
- Four trenches, each about 200 meters in length, were excavated to expose bedrock and continuous rock samples collected; assays are expected late January 2021. Drilling plans for 2021 will be contingent upon results.
North Pogo Block:
- The north Pogo block is on the opposite side of the Goodpaster Batholith and may represent a mirror-image to the Pogo trend that has seen almost no prior exploration.
- Prospecting with stream sediment, rock, and soil sampling was carried out in the vicinity of an interesting airborne magnetic anomaly adjacent to a mapped low-angle fault; results have been received and are being evaluated.
Divide Block:
- Prior explorers had intersected high-grade gold with core drilling within a large multi-element soil anomaly rich in copper. The gold veins intersected are surrounded by copper-bearing rocks possibly indicative of a porphyry copper deposit.
- Stream sediment, soil, and rock sampling was done by Millrock to extend the anomalous zone eastward. The program results will be evaluated in January 2021.
Exploration at 64North is being done in a collaborative manner between technical teams from Millrock and earn-in funding partner Resolution. Resolution can earn up to a 60% interest in the 64North Gold Project through exploration expenditures of US$20 million, payment of US$200,000 cash, and issuance of 38 million Resolution shares. The minimum commitment for 2020 was US$5.0 million which Resolution has met.
Upon issuance of 10 million Resolution shares and payment of US$50,000 Resolution will vest with an initial 30% ownership in the project. Other details of the agreement between Millrock and Resolution are documented in Millrock’s announcement made on December 16, 2019.
Galway Metals drills 4.7 m of 33.7 g/t Au at Clarence
Galway Metals Inc. has released results from the first seven follow-up holes from the previously reported new discovery (now named the Adrian zone) of 13.4 grams per tonne gold over 12.95 metres in hole CL20-65, located about 270 metres northeast of the George Murphy zone (GMZ) at the Clarence Stream gold project in southwestern New Brunswick (Aug. 18, 2020, press release). These seven follow-up holes, of which Galway has received only partial assays from three, have numerous intersections, such as 33.7 g/t Au over 4.7 m and 1.5 g/t Au over 34.3 m. Additional assays have also been received from the original Adrian discovery hole, such as 1.2 g/t Au over 23.5 m.
Read MoreDrill result highlights in the New Adrian zone include:
- Hole CL-65 (original Adrian zone discovery hole) intersected 13.4 grams per tonne (g/t) Au over 12.95 metres (m) (previously released), including 40.15 g/t Au over 1.0 m, 26.0 g/t Au over 0.55 m, 78.85 g/t Au over 0.8 m, 16.0 g/t Au over 0.5 m and 32.9 g/t Au over 0.95 m, plus the newly reported intersects of 1.2 g/t Au over 23.5 m, including 8.3 g/t Au over 0.65 m, 5.0 g/t Au over 0.75 m, 3.3 g/t Au over 0.5 m, and 2.9 g/t Au over 0.55 m, plus 4.1 g/t Au over 1.4 m, including 5.5 g/t Au over 0.9 m (visible gold), starting at vertical depths of 172 m, 103 m and 178 m, respectively.
- Hole CL-81 intersected 33.7 g/t Au over 4.7 m, including 60.7 g/t Au over 2.15 m, which includes 89.6 g/t Au over 0.5 m, starting at a vertical depth of 171 m.
- Hole CL-70 intersected 1.5 g/t Au over 34.3 m, including 25.9 g/t Au over 0.75 m, 13.1 g/t Au over 0.6 m, 11.1 g/t Au over 0.65 m and 3.9 g/t Au over 0.9 m, starting at a vertical depth of 120 m.
- Hole CL-73 intersected 2.7 g/t Au over 16.0 m, including 26.3 g/t Au over 0.8 m and 23.6 g/t Au over 0.65 m, plus 1.3 g/t Au over 5.65 m, including 4.2 g/t Au over 0.7 m, starting at vertical depths of 159 m and 248 m, respectively.
- Hole CL-77 intersected 1.3 g/t Au over 35.3 m, including 22.0 g/t Au over 0.5 m and 14.1 g/t Au over 0.6 m (within 3.6 g/t Au over 7.6 m), plus 0.85 g/t Au over 14.8 m, plus 1.0 g/t Au over 9.05 m, including 3.1 g/t Au over 0.95 m, starting at vertical depths of 66 m, 135 m and 264 m.
- Hole CL-82 intersected 1.5 g/t Au over 13.9 m, including 8.7 g/t Au over 1.05 m and 4.2 g/t Au over 0.6 m, starting at a vertical depth of 68 m.
“Galway now has four deposits not yet in resource — the new Adrian zone, plus the GMZ, Richard and Jubilee zones, which have been the focus of the company’s drill program during the past three years. With the seven new drill holes, the Adrian zone has intersected mineralization covering 266 m in the northwest-southeast direction (likely includes the eastern extension of the GMZ), 252 m in the northeast-southwest direction, and over a vertical distance of 268 m — and the new Adrian zone remains open for expansion in all directions. Clarence Stream’s gold resource, which currently includes the South and North zones only, is scheduled to be updated to incorporate these four additional zones in the first quarter — with expansion drilling ongoing.
“The Adrian zone is not the only new discovery Galway has recently announced at Clarence Stream. The other new discovery returned 186.5 g/t Au over 0.6 m, located about one kilometre southwest of Jubilee. Follow-up drilling in that area is planned for early in the new year with one of the five rigs Galway has deployed in its fully financed, 2020/[20]21, 75,000 m Clarence Stream drill program. Taken together, Galway has intersected strong gold mineralization along a 3.8 km trend from one new discovery area to the other, with the GMZ, Richard and Jubilee zones in between,” said Robert Hinchcliffe, president and chief executive officer of Galway Metals.
Mike Sutton, vice-president and chief geologist of Galway Metals, noted: “Follow-up drilling to the original Adrian zone discovery hole has identified multiple, wide vein systems that appear to have different orientations. As such, we have not yet arrived at an interpretation of the veins in the Adrian zone. What we do know is that, with results such as 13.4 g/t Au over 12.95 m, 33.7 g/t Au over 4.7 m, 1.5 g/t Au over 34.3 m, 2.7 g/t Au over 16.0 m, 1.3 g/t Au over 35.3 m and 1.2 g/t Au over 23.5 m, there is good potential in that area to increase the upcoming resource.”
Interpretation of the Adrian zone has not yet been determined
The Adrian zone is located about 270 m northeast of the GMZ. The GMZ is 765 m long to date (excludes the Adrian zone), with multiple structures over 310 m horizontal thickness (width), and with all veins open in every direction. The Adrian zone appears to be located along an east-west magnetic low but the orientation of mineralized veins within it appears to change. In the easternmost hole (hole 77) there is an intersection of about 30 per cent quartz veining from 71 m to 171 m; the hole appears to be intersecting the zone at a low angle (20 degrees). This would suggest either a flat south-dipping vein or a northwest-southeast orientation similar to the North zone. On the southern side, the 13.4 g/t Au over 12.95 m (VG) intersection (intersected at 50 degrees) lines up with the 33.7 g/t Au over 4.7 m (VG) intersection (intersected at steep angles about 50 to 90 degrees), and likely with the 1.5 g/t Au over 34.3 m intersection (includes 25.9 g/t Au over 0.75 m (VG) — intersected at 25 degrees). The elevations of each of these intersections suggest a north dip and a strike along the interpreted east-west trend and location of the Sawyer Brook fault. One way to explain the changes in orientation would be that the veins are folded — for which there is evidence in the magnetics. The interpretation is complicated by the inability to optically downhole survey the holes.
The intersection of 33.7 g/t Au over 4.7 m is located 21 metres northeast and deeper than the 13.4 g/t Au over 12.95 m discovery intersection. The intersection of 1.5 g/t Au over 34.3 m is located 64 metres southeast and at a higher elevation than the 13.4 g/t Au over 12.95 m intersection, and the intersection of 1.3 g/t Au over 35.3 m is located 112 metres northeast of the 13.4 g/t Au over 12.95 m intersection.
ASSAY RESULTS
Hole ID From To Intercept Intercept Au
(m) (m) (m) (m) TW (g/t)
Adrian zone
GWM20CL-65 125.3 151.3 pending
151.3 174.8 23.5 1.2
incl. 154.75 155.4 0.65 8.3
incl. 158.5 159 0.5 3.3
incl. 170 171.45 0.75 5
incl. 174.25 174.8 0.55 2.9
186 189 3 1
incl. 188.1 189 0.9 2
191.25 192 0.75 0.9
214 215 1 0.6
222.3 223.05 0.75 1
224 225 1 0.4
228 229 1 0.5
243.5 256.45 12.95 13.4*
incl. 246 246.5 0.5 29.8*
incl. 246.5 247 0.5 50.5* VG
incl. 250.85 251.4 0.55 26.0*
incl. 252.4 253.2 0.8 78.9* VG
incl. 255.5 256.45 0.95 32.9*
259.1 260.75 1.65 0.5
269.5 270.9 1.4 4.1
incl. 270 270.9 0.9 5.5 VG
274 275 1 0.7
298.65 299.2 0.55 0.8
301.35 302.35 1 2.8
311.45 312.3 0.85 0.6
350.35 351 0.65 1.1
352.85 354.2 1.35 0.5
367 368 1 0.8
374.3 375.2 0.9 0.5
538.7 541.1 2.4 1.5
GWM20CL-82 8.25 71.65 pending
72.65 86.55 13.9 1.5
incl. 73.65 74.25 0.6 4.2
incl. 78.7 79.75 1.05 8.7
86.55 381 pending
GWM20CL-81 8 179 pending
179.85 184.55 4.7 33.7 VG
incl. 180.35 182.5 2.15 60.7 VG
188.1 381 pending
GWM20CL-79 20 225 pending
225 228.4 3.4 1.2
230 230.8 0.8 0.6
235.2 297.5 pending
303 414 pending
GWM20CL-77 72.7 108 35.3 1.3 VG
incl. 100.4 108 7.6 3.6
incl. 100.95 101.55 0.6 14.1 VG
incl. 107 107.5 0.5 22
118.8 119.3 0.5 0.5
126 126.65 0.65 0.5
147.7 162.5 14.8 0.85
incl. 156.8 157.45 0.65 2.2
215.05 216 0.95 0.9
220 221.25 1.25 0.7
226 226.95 0.95 0.6
235.3 236 0.7 0.6
284.6 285.55 0.95 0.8
288.2 289.2 1 0.6
291.4 300.45 9.05 1
incl. 291.4 292.35 0.95 3.1
426.9 427.5 0.6 0.5
446.35 447 0.65 0.6
448.55 449.1 0.55 0.5
GWM20CL-73 146.85 147.5 0.65 1.8
177.65 178.45 0.8 1.1
229 245 16 2.7
incl. 234.4 235.2 0.8 26.3
incl. 238.8 239.45 0.65 23.6
248.85 249.35 0.5 1
274.7 275.25 0.55 0.7
276.75 277.3 0.55 0.6
294.85 295.4 0.55 4.4
298.95 299.5 0.55 1.4
302 303 1 1
310 310.75 0.75 0.8
324.2 325 0.8 4.1
356.75 357.35 0.6 0.7
358.35 364 5.65 1.3
incl. 358.9 359.6 0.7 4.2
383 390 7 0.6
418 419.25 1.25 0.8
432 433.65 1.65 1.4
GWM20CL-70 126.05 126.7 0.65 0.5
134.65 135.65 1 2.4
142.2 142.95 0.75 0.5
155 156.55 1.55 1.5
159 160 1 0.6
171 205.3 34.3 1.5 VG
incl. 171 171.65 0.65 11.1
incl. 176.1 177 0.9 3.9
incl. 198.7 199.3 0.6 13.1
incl. 204.55 205.3 0.75 25.9 VG
211.9 213.8 1.9 0.7
218.5 220 1.5 1.5
238.85 240 1.15 1.2
243.85 244.4 0.55 9.2
250.85 251.45 0.6 1.1
260.8 261.8 1 1
502 503 2 0.5
GWM20CL-67 159.8 161 1.2 0.9
173 177.95 4.95 1.1
186 186.95 0.95 1.6
201.75 202.5 0.75 1
205.05 206.1 1.05 0.9
219 229 10 1.2
incl. 223 224.05 1.05 2.5
incl. 228 229 1 4.8
VG equals visible gold.
Value of 0.42 g/t Au was used for the bottom cut-off.
True widths are unknown if not noted.
* This denotes previously released results.
New Brunswick junior mining assistance program
Galway would like to acknowledge financial support from the New Brunswick junior mining assistance program, which partially funded drilling of the GMZ, Jubilee zone and Richard zone.
Geology and mineralization
The recent discovery of the Richard zone in hole 12 contains elevated levels of bismuth, arsenopyrite and antimony, in multiple quartz veins, with tungsten in the vicinity. This is similar to other Clarence Stream deposits, which can be characterized as intrusion-related quartz-vein hosted gold deposits. The Richard zone contains multiple zones of quartz veining with sulphides and sericite alteration. In general, mineralization at Clarence Stream consists of 10 to 70 per cent quartz stockworks and veins with 1 to 5 per cent fine pyrite plus pyrrhotite plus arsenopyrite plus stibnite in sericite altered sediments. The Jubilee mineralization consists of 2 to 5 per cent disseminated pyrite, sphalerite, galena, arsenopyrite, chalcopyrite and pyrrhotite in sediments with white to smoky grey quartz veining. Locally there is up to 10 per cent sphalerite and semi-massive galena veinlets. The 2.5 km trend that hosts the GMZ, Richard zone and Jubilee zone contains a mineralized mafic intrusive locally — similar to the South zone, which currently hosts most of the property’s last reported gold resources (September, 2017). A more complete description of Clarence Stream’s geology and mineralization can be found at the company’s website.
Review by qualified person, quality control and reports
Michael Sutton, PGeo, director and vice-president of exploration for Galway Metals, is the qualified person who supervised the preparation of the scientific and technical disclosure in this news release on behalf of Galway Metals. All core, chip/boulder samples and soil samples are assayed by Activation Laboratories, 41 Bittern St., Ancaster, Ont., Canada, which has ISO/IEC 17025 accreditation. All core is under watch from the drill site to the core processing facility. All samples are assayed for gold by fire assay, with gravimetric finish, and other elements assayed using ICP. The company’s QA/QC program includes the regular insertion of blanks and standards into the sample shipments, as well as instructions for duplication. Standards, blanks and duplicates are inserted at one per 20 samples. Approximately 5 per cent of the pulps and rejects are sent for check assaying at a second lab with the results averaged and intersections updated when received. Core recovery in the mineralized zones has averaged 99 per cent.
International Consolidated Uranium Acquires the Laguna Salada Uranium and Vanadium Project in Argentina
VANCOUVER, BC, Dec. 14, 2020 /CNW/ – International Consolidated Uranium Inc. (“CUR” or the “Company“) (TSXV: CUR) is pleased to announce that it has entered into an option agreement (the “Option Agreement“) with U3O8 Corp. (“UWE” or the “Vendor“) (TSXV: UWE.H) providing CUR with the option to acquire a 100%, undivided interest, in the Laguna Salada Project (“Laguna Salada” or the “Property“) located in Chubut Province, Argentina.
Read More
Key Points:
- Advanced Stage Project – A preliminary economic assessment, published in September 2014, established an annual production of 0.6m lbs of U3O8 and 1m lbs of V2O5 at cash cost of production US$21.63 per pound of U3O8, net of a vanadium by-product credit
- Uranium and Vanadium Resources with Growth Potential – An initial resource estimate for uranium and vanadium was published in May 2011 with exploration in other areas showing potential for expansion
- Nuclear Friendly Country – According to the World Nuclear Association, Argentina currently generates 5% of its electricity from three nuclear reactors and has in country uranium conversion and enrichment capabilities
- Building to Critical Mass – the Company now has agreements to acquire five uranium projects in Australia, Canada and Argentina
- Familiar Project and Jurisdiction – Management and advisors to the company have hands on experience with the project and operating in-country
- Attractive Acquisition Structure – Lower upfront consideration with additional payments over time and contingent on, high uranium prices
Philip Williams, CEO commented “The acquisition of Laguna Salada wraps up a busy year for CUR. We now have exposure to five uranium projects in three countries each with attractive characteristics for advancement. We consider Laguna Salada to be one of the more advanced projects in our portfolio with a PEA completed and substantial mining and processing work done by the previous owners. We are also attracted to the project for its vanadium by-product, the exploration potential beyond the known resources and the jurisdiction due to its pro-nuclear stance. As we close out an active and successful year, we are encouraged by renewed market interest in the uranium sector and are excited for our prospects next year.”
Terms of the Option Agreement
Pursuant to the Option Agreement, CUR will secure the option to acquire a 100% interest in the Laguna Salada Project (the “Option“) in consideration for the issuance of $125,000 of common shares in the capital of the Company (the “Common Shares“), priced at the 5-day volume weighted average price one business day prior to the date that the TSX Venture Exchange (the “TSXV“) provides conditional approval of the Option Agreement (the “Effective Date“) and a cash payment of $225,000 to UWE by CUR of which $50,000 is to be utilized for property expenditures.
The Option is exercisable at CUR’s election on or before the second anniversary of the Effective Date, for additional consideration of $1,500,000 in Common Shares or cash, at CURs election. If the Option remains unexercised on the six-month anniversary of the Effective Date, the Vendor is entitled to and additional $50,000 in cash also to be utilized for property expenditures.
If CUR elects to exercise the Option, UWE will be entitled to receive the following spot price contingency Payments:
| Uranium Spot Price (USD) | Vendor Payment (Cash or Shares) |
| $50 | $505,000 |
| $75 | $758,000 |
| $100 | $1,010,000 |
Within five business days of the uranium spot price reaching USD$50 UWE will have the option to receive $250,000, in cash or shares, at CURs election, in lieu of each of the USD$75 and USD$100 spot price contingent payments. The spot price contingent payments will expire 10 years following the date the option is exercised.
Further UWE has the one-time right, exercisable on either the date that is six (6) months or twelve (12) months following the Effective date of the Option Agreement, to force CUR to exercise the option and satisfy the remaining portion of the purchase price by issuing such number of CUR shares to UWE that results in UWE, together with the CUR shares already owned by UWE, owning an aggregate number of CUR shares equal to 9.9% of the total number of issued and outstanding CUR Shares after giving effect to such issuance. Notwithstanding, subject to the 5 day volume weighted average closing price of CUR’s Shares equalling C$1.00 or greater, in the event that CUR can issue sufficient CUR Shares to UWE to satisfy the remain portion of the Purchase Price without UWE holding more than 9.9% of the issued and outstanding CUR Shares, then CUR shall issue such number of CUR Shares to UWE to satisfy that portion of the remaining Purchase Price.
All securities issued in connection with the Option Agreement are subject to a hold period expiring four months and one day from the date of issuance.
The Laguna Salada Uranium Project
The Laguna Salada Project is an advanced exploration project located in the central part of Chubut
Province, Argentina. The property is located about 270km southwest of the provincial capital, Rawson and approximately 230km from the main commercial port city of Comodoro Rivadavia. Reconnaissance work on Laguna Salada was first conducted in 2007 with the aim of confirming anomalies detected in a 1978 airborne radiometric survey undertaken by Comision Nacional de Energia Atomica, Argentina’s National Nuclear Authority (“CNEA”).
The CNEA recognized that the uranium mineralization is related to “caliches” – partial cementation of the host by calcium carbonates. “Caliche”- and “Calcrete”-type deposits are surficial uranium deposits found in semi-desert environments. Caliche-type deposits differ in that they typically occur in unconsolidated clastic sediments such as gravel, as opposed to cemented sediments in the case of Calcrete-type uranium deposits. Examples of surficial uranium deposits are Lake Maitland in Western Australia and Langer Heinrich in Namibia. Laguna Salada is similar to the free-digging Tubas Red Sand Deposit in Namibia.
Uranium-vanadium mineralisation at Laguna Salada is contained in flat-topped mesas that are approximately 10m higher than the surrounding plain, on the north bank of the Rio Chico, one of the principal rivers in the region that flows northeast into the Rio Chubut. Mineralisation at Laguna Salada occurs in a tabular, gently undulating layer that contains yellow-green uranium-vanadium minerals at shallow depth in unconsolidated, sandy gravel. The mineralised layer lies beneath shallow soil and typically a barren cap of gravel on the top of the mesas.
The entire uranium-vanadium resource at Laguna Salada lies within 3 metres of surface in unconsolidated material in the flat, gravel plain that extends from the foothills of the Andes to the Atlantic coast in southern Argentina. The mining method modelled in the PEA involved cutting a long trench into the mineralized gravel, and mining the gravel from the one side of the trench, screening it to remove the fine-grained uranium-vanadium – bearing material and immediately replacing the gravel on the back side of the trench. Desert shrubs from the leading edge of the trench would immediately be replanted on the back side of the trench, minimizing the environmental impact of the mining operation. The mineralized, fine-grained component of the gravel would be agitated into a slurry and pumped to a central processing facility where it would be leached with an alkaline solution.
The PEA was conducted early in the life of the project, shortly after the first resource was estimated, to ensure that the deposit had low-cost production potential. Having met that hurdle, the concept is to expand the resource into areas in which exploration had shown significant mineralization potential. That potential was not realized by previous operators due to the protracted downturn in the uranium market.
Mineral Resources1
The Laguna Salada* PEA is based on the below initial resource prepared in accordance with National Instrument 43-101 (“NI 43-101”) by independent consulting company, Coffey Mining Pty Ltd. (“Coffey Mining”), 2011 (Table 1).
Table 1 – Resource Estimate for the Laguna Salada Deposit
| Summary of Resource for the Laguna Salada Project using recommended cut-off grades for the Guanaco and Lago Seco areas |
||||||
| Category of Resource |
Lower cut-off (ppm U3O8) |
Tonnes (millions) |
Average Grade | Contained Metal | ||
| U3O8 (ppm) | V2O5 (ppm) |
U3O8 (Mlb) |
V2O5 (Mlb) |
|||
| Indicated Resources | ||||||
| Guanaco | 25 | 44.6 | 55 | 530 | 5.5 | 52.0 |
| Lago Seco | 100 | 2.7 | 145 | 840 | 0.9 | 5.0 |
| Total Indicated | 47.3 | 60 | 550 | 6.3 | 57.1 | |
| Inferred Resources | ||||||
| Guanaco | 25 | 19.4 | 80 | 555 | 3.4 | 23.7 |
| Lago Seco | 100 | 1.3 | 130 | 1,065 | 0.4 | 3.1 |
| Total Inferred | 20.8 | 85 | 590 | 3.8 | 26.9 |
The recommended cut-off grades for the two mineralized areas, taking into account their distinct beneficiation characteristics, are: 25ppm U3O8 for Guanaco and 100ppm U3O8 for Lago Seco.
* Removal of pebbles and coarse sand by screening results in uranium grades increasing by 11 times over the in-situ grade of gravel from the Guanaco area and seven times from the Lago Seco area. Vanadium grades increase 3.8 times through beneficiation of gravels from both areas.
(1) May 2011 technical report: “Laguna Salada Project, Chubut Province, Argentina: NI 43-101 Technical Report: Initial Resource Estimate”, which is available at www.u3o8corp.com and on SEDAR at www.sedar.com.
Kincora Copper to sell Mongolian asset portfolio
Kincora Copper Ltd. has entered into a binding option and acquisition agreement with Resilience Mining Mongolia Pty. Ltd. (RMM). RMM is a private Australian company that is an active explorer and project generator in Mongolia, lead by an executive team and board with extensive in-country Mongolia experience.
Read MoreBinding term sheet executed with Resilience Mining Mongolia Pty Ltd (“RMM”) for Kincora’s Mongolian asset portfolio retaining significant upside to exploration, project generation and development successes
Benefits to Kincora:
retain a 20% free carry interest on existing project portfolio
to own 9.9% of RMM upon successful listing and raising on the ASX
first right of refusal to gain a 20% interest in any new project generated by RMM in Mongolia
The Agreement provides RMM a period of exclusivity, paid for in monthly cash instalments, to complete due diligence, legal agreements and capital market activities. Kincora’s Mongolian asset portfolio includes the Bronze Fox mining license, neighbouring Tourmaline Hills exploration license and Red Well exploration license (“Mongolia Portfolio”). RMM will also secure the Southern Gobi “White Pearl” camp, and access to Kincora’s proprietary project generation database and Mongolian based exploration and administration teams.
Upon RMM having raised a minimum of A$6 million in new equity, listing on the Australian Securities Exchange (“ASX”) and exercise of the option, Kincora will retain a 20% effective free carried asset level interest for Kincora’s existing Mongolia portfolio until certain project milestones, have the right of first refusal for a 20% effective asset level interest in any new Mongolian projects, a 9.9% stake in RMM and the right to a board seat. The shares will be subject to a 12-month voluntary escrow period.
Cameron McRae, Kincora’s chairman, commented: “Having commenced a strategic review for the Mongolia portfolio following the award of a mining license for Bronze Fox in September, we are very pleased to have signed this binding term sheet with RMM.
The framework provides attractive upside to Kincora, backing a well-motivated group, advancing an attractive portfolio and project generation strategy. The deal also enables Kincora to focus on our district scale pipeline and ongoing drilling activities in NSW, Australia.
RMM are a very reputable group, well known to Kincora, who have been active on the ground in Mongolia since 2015. We look forward to working with Mark Stewart, Peter Reynolds and the RMM team in completing this transaction but also advancing the inherent value of our Mongolian portfolio and their Mongolia strategy”.
Mark Stewart, chairman of RMM, stated: “Kincora’s previous focus in Mongolia has been on large scale porphyry and district scale exploration, and being willing to drill to extensive depths looking for elephants in elephant country. This strategy continues in NSW, a region and portfolio I know very well, and I appreciate the very compelling opportunity the Trundle project in particular represents.
For RMM, our focus is nearer surface higher-grade deposits both on Kincora’s tenure and through their and our substantial project generation database and network. In particular, we will look to bring our development experience to the table, initially focusing on the scope for a maiden JORC resource and near term oxide SX/EW development potential at Bronze Fox.
Our initial reviews have identified five additional near surface gold and copper targets which are drill ready and we are also keen to see what the assay results from this years’ field program at Tourmaline Hills yield.”
Completion of the Agreement is conditional on:
Continued monthly cash payments by RMM for on-going exclusivity relating to Kincora’s Mongolian portfolio
Completion of due diligence review by RMM
RMM having raised a minimum of A$6 million in new equity
RMM having listed on the ASX
Kincora gaining certain approvals for the Agreement
The execution and delivery of the definitive option agreement
Asset level upside
Existing portfolio: Kincora will retain a 20% effective free carried asset level interest for the Company’s existing Mongolian asset portfolio until the following milestones:
Bronze Fox: Following completion of a positive independently defined (or mutually agreed internally) pre-feasibility study supporting project development1 within the Bronze Fox Intrusive Complex (“BFIC”).
Tourmaline Hills and Red Well: Following completion of a positive independently defined (or mutually agreed internally) scoping study supporting project development1 within the Tourmaline Hills Intrusive Complex and license (excluding the continuation of the BFIC), and the Red Well license.
1 NPV @ 10% discount rate of at least A$30 million.
Following which normal industry standard JV dilution mechanisms will apply.
New projects: Kincora will have the right of first refusal for a 20% effective asset level interest in any new Mongolian projects that RMM secures. Following which normal industry standard JV dilution mechanisms will apply.
Mongolia portfolio
Kincora has been an active explorer and project generator in Mongolia focused on large-scale porphyry discoveries. A peak landholding of 13 license covering 1689km2 has been systematically explored and refined to 3 licenses covering 321km2.
The Company has retained one of the largest land packages in the Southern Gobi porphyry belt and undertaken the largest project generation and exploration initiatives by any foreign group in recent times in Mongolia.
In September 2020, a mining licence was issued over the eastern license and portion of the Bronze Fox project, centred over the Bronze Fox Intrusive Complex within this license.
The mining license provides tenure for a 30-year period. Relatively limited drilling supports one of the largest copper systems in Mongolia with only a small portion of the Bronze Fox intrusion drill tested. An independent block model supports a 416-428Mt @ 0.26-0.30% copper exploration target (0.20% copper cut off), with desktop studies having been undertaken for a potential small-scale oxide development project1.
Subsequent to the issuance of the mining license, surface exploration activities commenced at the neighbouring Tourmaline Hills Intrusive Complex, which is also a large, outcropping gold-copper system with limited drilling and often the focus of informal gold mining activities.
Kincora’s 2020 activities at Tourmaline Hill focused on re-logging all prior drill holes held by the Company and undertaking further surface geological activities, exploring the concept of a higher-level epithermal gold system. This year’s field activities benefit from the Company’s activities in the Macquarie Arc, and similar type conceptual target to the Cowal project (flagship project of Evolution Mining, with a 9Moz gold resource inventory) and the target of the Company’s Fairholme project.
Following positive initial results, a geological mapping, rock chip and soil sampling program commenced in the Mongolian autumn with results of this program pending, including assay results for 37 rock chip samples.
The southern edge of the Company’s Red Well license is located as close as 15km along the trend of the Oyu Tolgoi and Shivee Tolgoi mineralized systems, which have a known 26km NNE arc transverse trend. In 2017, Rio Tinto undertook drilling on the southern adjacent license to Red Well on strike to the undercover extension of the Shivee Tolgoi mineralised trend.
Kincora’s exploration activities at Red Well have included rock chip sampling, age dating, archaeology and palaeontology has been under taken ahead of ground magnetics and gravity, and soil geochemistry. Best rock chip sample from earlier work in altered and mineralised volcanics returned 2% copper, 0.25g/t gold, 1.5g/t silver, 0.25% arsenic and zinc, 0.08% lead and 0.002% molybdenum. Field season activities in 2020, included further rock chip sampling.
1 The potential quantity and grade ranges are conceptual. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. For further details on Bronze Fox refer to: November 18th, 2019 and June 26th, 2019 press releases.
Highgold acquires three properties at Munro-Croesus
Highgold Mining Inc. has acquired three mineral properties surrounding the company’s Munro-Croesus gold project located in the greater Timmins region, Ontario. These new property acquisitions increase the size of the project by more than 40 per cent, creating a single contiguous property with an area of 28 square kilometres (2,787 hectares). The project is adjacent to Highway 101 in the heart of the Abitibi greenstone belt, Canada’s premier gold mining address with over 200 million ounces of gold production.
Read More“Consolidation of Munro-Croesus has created a single large property package in a highly prospective region of the greater Timmins gold camp; this strategic land position has received almost no contemporary exploration due to the historically fractured land ownership,” commented president and chief executive officer Darwin Green. “This represents a rare opportunity in a mature and productive gold jurisdiction and we are excited to initiate the first modern, systematic exploration of the greater project area. Central to our exploration thesis is a high conviction that the exceptional tenor of gold grades produced from the Croesus mine near the turn of the last century does not occur in isolation and is indicative of a highly fertile gold environment.”
The company has commenced a detailed airborne magnetic-electromagnetic geophysical survey of the project area with plans to have drills turning again in February.
Consolidation activities in 2020
In the past 12 months, the company has completed seven separate transactions to consolidate a patchwork of mining claims held by many different landowners. Most are patented mining claims that were originally established in the early to mid-1900s and have seen no modern exploration work. Highgold’s historic Croesus mine property, renowned for its high-grade gold mineralization, has been the nucleus to the land consolidation effort and Highgold is the first company to assemble the surrounding claims under single ownership. The Royal Ontario Museum (ROM) holds five Croesus ore specimen samples that collectively weigh 85 pounds and contain 480.7 ounces of gold or 11,310 ounces gold per short ton (387,727 grams per tonne). In addition to the past producing Croesus mine, the project hosts numerous other gold prospects that include pits, trenches and exploration shafts developed early in the last century. Several plus-one-million-ounce gold deposits are located within a two-to-seven-kilometre radius of the project, including the currently operating Black Fox mine complex, the former producing Ross mine, and the development-stage Fenn-Gib deposit.
Readers are cautioned that the company has no interest in or right to acquire any interest in the Black Fox mine complex, the Ross mine or the Fenn-Gib deposit, and that mineral deposits, and the results of any mining thereof, on adjacent or similar properties are not indicative of mineral deposits on the company’s properties or any potential exploitation thereof.
Deal terms
Highgold, through its wholly owned subsidiary, entered three separate agreements with various arm’s-length vendors to acquire an aggregate of 12 patented mining claims, one leasehold property consisting of 16 mining claims; one mining licence of occupation, 13 single cell mining claims, and three boundary cell mining claims covering a total area of approximately eight square kilometres (819 hectares) in the Timmins region, Ontario. In consideration of the acquisitions and subject to TSX Venture Exchange acceptance, as applicable, the company has made, or agreed to make, cash payments in the aggregate amount of $100,000 to the vendors, and issued, or agreed to issue, an aggregate of 424,976 common shares of the company to the vendors. Pursuant to the agreements, the acquired properties are subject to certain net smelter returns royalties, a portion of which royalties may be purchased back by the company.
Ontario exploration update
The company reports that it has completed the previously announced fall drill program at its Ontario properties (see company news release dated Sept. 22, 2020). A total of four holes totalling 1,179 metres were completed at the Golden Mile property and 31 shallow holes totalling 2,645 metres were completed at the Munro-Croesus property. Assay results will be reported in batches as they are received.
Westhaven Drills 5.50 Metres of 4.58 g/t Gold and 267.40 g/t Silver at the Newly Discovered FMN Zone at Shovelnose
VANCOUVER, British Columbia, Dec. 14, 2020 (GLOBE NEWSWIRE) — Westhaven Gold Corp. (TSX-V:WHN) is pleased to announce assay results from its ongoing drill program at its 17,623-hectare Shovelnose gold property. Shovelnose is located within the prospective Spences Bridge Gold Belt (SBGB), which borders the Coquihalla Highway 30 kilometres south of Merritt, British Columbia.
Read MoreThe Company has retained Ard Securities as its lead advisor and underwriter in connection with the proposed listing. It plans to complete the listing in conjunction with a placement of shares to Mongolian investors, subject to regulatory approvals, on or before April 2021.
Bataa Tumur-Ochir, Steppe Gold, President and CEO, commented, “Steppe Gold quickly positioned itself as Mongolia’s leading gold producer and we are excited to attract more Mongolian retail investors and institutions in the growth of our exciting and growing portfolio of precious metal assets. Steppe Gold already has over 20% of its shares owned by Mongolian investors and, with this move, we are reaffirming our commitment to enable more Mongolians to share in the success of Steppe Gold. Steppe Gold has built a strong reputation for community engagement and support, job creation and responsible mining already, and this proposed listing is aligned with our goal to create a national champion in precious metals, and an important contributor to Mongolia’s economic success. Ard Securities is Mongolia’s leading brokerage and financial advisory company, and we are looking forward to working with them on our secondary listing.”
Amarbayasgalan Enhsayhan, Executive Chairman of Ard Securities and Head of Investment Banking at its parent, Ard Financial Group, noted, “We are delighted to be working with Steppe Gold on the dual listing of its shares on the MSE. We are witnessing an increased interest from Mongolia’s growing retail investor base and they are excited to participate in the success of a home-grown mining company with a demonstrated success story. Mongolia is a proud mining country and Steppe Gold has quickly established itself as a great example of responsible mining and job generation in this high growth sector. We want to make this deal a case study for listing in this tough environment.”
Canada Nickel signs MOU with first nations at Crawford
Canada Nickel Company Inc. has entered into a memorandum of understanding (MOU) with the Matachewan and Mattagami first nations in relation to exploration and development operations at the company’s Crawford nickel-cobalt sulphide project located near Timmins, Ont.
Read MoreThe MOU establishes a commitment by Canada Nickel to engage in ongoing consultation and establish a mutually beneficial cooperative and productive relationship with the First Nations located in the Project area. The agreement also provides the communities with an opportunity to participate in the benefits of the Project through business opportunities, employment and training, financial compensation and consultation on environmental matters.
Mark Selby, Chair and CEO of Canada Nickel Company, said: “Canada Nickel is fully committed to the responsible development of the Crawford Nickel-Cobalt Sulphide project to deliver NetZero Nickel and Cobalt products. From the very beginning, our approach has been to work with First Nations and local stakeholders as partners in order to create shared value through economic opportunities, while also being respectful and responsible stewards of the natural environment.” said Mark Selby, Chair and CEO of Canada Nickel. “Canada Nickel acknowledges Matachewan and Mattagami First Nations in their commitment to protect and enhance the land and resource-based economy within their Traditional Territory. We welcome their constructive approach and their support of our efforts to move forward on the development, permitting and construction of the project.”
Chief Jason Batisse of Matachewan First Nation is “happy to be forging a strong and mutually beneficial relationship with Canada Nickel on their promising Nickel-Cobalt Project.” Throughout our preliminary discussions, it has become apparent that “Mark is genuinely committed to responsible and sustainable development, and our community appreciates being engaged in the early planning stages of the project” said Chief Chad Boissoneau of Mattagami First Nation.
The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity. Canada Nickel has launched wholly-owned NetZero Metals Inc. with the aim to develop zero-carbon production of nickel, cobalt, and iron at the Crawford Project.
Hudson Resources Reports Assays From 35 Grab Samples Returning an Average of 19.35% Nb2O5 Along a 112 Meter Mineralized Structural Zone at the Nukittooq Niobium Project in West Greenland
VANCOUVER, British Columbia, Dec. 14, 2020 (GLOBE NEWSWIRE) — HUDSON RESOURCES INC. (“Hudson” or the “Company”) (TSX Venture Exchange “HUD”; OTC “HUDRF”) is pleased to announce that it has received the assays from its niobium and tantalum exploration project (the “Project”) located in its wholly owned Sarfartoq exploration license in southwestern Greenland. The niobium project is called Nukittooq which means “strong man” in Greenlandic to reflect the key characteristic of niobium as a strengthener of steel.
Read MoreHudson collected 38 samples from outcrop on the Project area (NR2020-13) which sits on the southern margin of the large Sarfartoq Carbonatite Complex which also hosts the Company’s ST1 Rare Earth Element (“REE”) deposit (https://hudsonresourcesinc.com/projects/sarfartoq-rare-earth-element-project/).
A total of 35 grab rock samples were taken from the outcrop approximately every three meters along the 112 meters of the roughly east-west trending structure that is coincident with an elevated radiometric anomaly. Three additional samples were also collected for mineralogical work along the same outcrop. Assay results for the key elements of niobium, tantalum and uranium are shown below in Table 1.
Highlights of the sampling program include:
- 35 grab samples reported an average grade of 19.35% Nb2O5, 0.27% Ta2O5, 0.38% U3O8
- Including a 30-meter section with 12 grab samples with an average grade of 32.35% Nb2O5
- The highest-grade grab sample reported a value of 48.50% Nb2O5, 1.21% Ta2O5, 1.08% U3O8
The mineral of economic interest in the Project area is pyrochlore (Na, Ca)₂Nb₂O₆(OH,F), a sodium – calcium niobate with common but minor substitution by tantalum, titanium, and uranium. The Nukittooq project is one of several niobium targets within a one square kilometer area that the Company is evaluating. The targets have similar geology supported by historical high-grade niobium assays.
Pyrochlore mineralization at Nukittooq occurs as massive replacement, thin veins and disseminations within dilational zones of shear/breccia structures that cut Precambrian granite gneiss and diabase dikes. The pyrochlore is co-crystalline with aegirine, alkali feldspar, and ferric-biotite formed during metasomatism and mineralization by ultra-alkaline (fenite) solutions and coeval with dolomitic carbonatite stringers and veinlets. Some of the pyrochlore has undergone remobilization during later hydrothermal activity as evidenced by alteration overprinting.
Niobium and tantalum are vital to a wide range of products in the energy, infrastructure, transportation, medical and defense sectors. The EU and the United States have designated niobium and tantalum as critical to their security and wellbeing. There are only three primary producers of niobium in the world with typical mine grades ranging from 0.56% Nb2O5 to 2.5% Nb2O5.
The niobium price has averaged US$42/kg over the past five years with expected demand growth of 8%/annum. Tantalum currently trades at US$150/kg.
The grab samples were analysed by SGS Lakefield, Canada, and the laboratory has commenced mineralogical work, including QEMSCAN and microprobe analysis, which will assist to drive a metallurgical testwork program.
Jim Cambon, President commented: “These results are exceptional and confirm our belief that our Sarfartoq license hosts some of the highest-grade niobium mineralization reported by a public company. Mineralogical work has commenced which will allow us to rapidly move towards a metallurgical testwork program. We will be exploring similar targets in the near vicinity with an objective to commence a drill program in the first half of 2021. We are excited to be advancing this project which is an important part of our portfolio of critical and strategic minerals in Greenland.”
Table 1. Assay Result for the 35 grab samples
| Tag # | Nb2O5 % | Ta2O5 % | U3O8 % | Tag # | Nb2O5 % | Ta2O5 % | U3O8 % | Tag # | Nb2O5 % | Ta2O5 % | U3O8 % | ||
| 1 | 0.02 | < 0.01 | 0.0 | 13 | 14.50 | 0.07 | 0.22 | 25 | 0.55 | < 0.01 | 0.01 | ||
| 2 | 4.76 | 0.02 | 0.09 | 14 | 47.10 | 0.77 | 1.06 | 26 | 18.50 | 0.41 | 0.52 | ||
| 3 | 4.87 | 0.03 | 0.10 | 15 | 36.00 | 0.53 | 0.68 | 27 | 42.40 | 0.54 | 0.81 | ||
| 4 | 28.50 | 0.12 | 0.58 | 16 | 4.54 | 0.03 | 0.09 | 28 | 41.60 | 0.54 | 0.83 | ||
| 5 | 46.70 | 0.21 | 0.53 | 17 | 7.87 | 0.05 | 0.15 | 29 | 29.10 | 0.18 | 0.28 | ||
| 6 | 5.11 | 0.02 | 0.09 | 18 | 26.10 | 0.40 | 0.46 | 30 | 4.06 | 0.03 | 0.09 | ||
| 7 | 1.48 | 0.02 | 0.03 | 19 | 43.00 | 0.80 | 1.02 | 31 | 6.99 | 0.08 | 0.15 | ||
| 8 | 16.20 | 0.05 | 0.24 | 20 | 36.80 | 0.67 | 1.05 | 32 | 3.75 | 0.03 | 0.07 | ||
| 9 | 7.63 | 0.04 | 0.14 | 21 | 48.50 | 1.21 | 1.08 | 33 | 13.20 | 0.08 | 0.18 | ||
| 10 | 4.33 | 0.02 | 0.06 | 22 | 40.80 | 0.92 | 1.05 | 34 | 9.11 | 0.07 | 0.20 | ||
| 11 | 2.69 | 0.02 | 0.04 | 23 | 32.30 | 0.38 | 0.52 | 35 | 6.50 | 0.06 | 0.14 | ||
| 12 | 13.20 | 0.07 | 0.19 | 24 | 28.60 | 0.38 | 0.58 |
A map showing locations of the samples can be found on the company website at: https://hudsonresourcesinc.com/projects/niobium-and-tantalum/.
Hudson owns 100% of the Sarfartoq exploration license which hosts the Sarfartoq Carbonatite Complex, this includes the Company’s advanced Sarfartoq ST1 Rare Earth Element project which hosts 24 million kg of neodymium oxide and 8 million kg of praseodymium oxide which are key components in permanent magnets. Hudson also holds a 31.1% interest in Hudson Greenland A/S which owns the White Mountain Anorthosite mine in Greenland, where the Company provides operational, marketing and sales support.
Dr. Michael Druecker is a Qualified Person, as defined by National Instrument 43-101, and reviewed the preparation of the geological and technical information in this press release.
Eskay Mining closes $13.79-million financing
Eskay Mining Corp. has closed the brokered private placement offering previously announced on Nov. 20, 2020, and Nov. 26, 2020, and has issued an aggregate of 1,214,100 units of the company at a price of 90 cents per unit, 2,904,700 flow-through shares of the company at a price of $1.05 per FT share and 9,657,000 flow-through units of the company at a price of $1.25 per FT unit for aggregate gross proceeds of $13,799,625. The Offering was led by Echelon Wealth Partners Inc. and Eight Capital as co-lead agents (the "Agents").
Read More"Strong demand for Eskay’s financing illustrates the excitement behind our recent discovery of multiple precious metal rich VMS systems across our very large land holding in the Golden Triangle," commented Dr. Quinton Hennigh, Director of and Technical Advisor to Eskay Mining. "These funds ensure our ability to undertake an aggressive, +30,000 m diamond drill program in 2021. Next year's program will focus on three objectives: 1) infill and step-out drilling at the 5 km long TV-Jeff VMS trend, 2) infill and step-out drilling at the 3 km long SIB-Lulu VMS system immediately adjacent to and on strike with Skeena Resources' Eskay Creek deposit, and 3) initial drill testing of up to a dozen newly identified high-priority targets across the property. Logistics and drill planning is currently underway with plans to commence drilling in June, 2021. We firmly believe that we are on the path to a significant precious metal rich VMS discovery and that next season's exploration program will prove to be one of the most exciting in Canada."
Each Unit and Each FT Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant a "Warrant"), with each Warrant entitling the holder thereof to acquire one common share of the Company (a "Warrant Share") at a price $1.30 until December 11, 2022.
The Company had granted the Agents an option to purchase up to an additional 20% of the Offered Securities which was exercised by the Agents.
The net proceeds from the Offering will be used to fund the Company's exploration activities, and for general corporate purposes. The gross proceeds received by the Company from the sale of the FT Shares and FT Units will be used to incur Canadian Exploration Expenses ("CEE") that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's properties in British Columbia, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of FT Shares and FT Units.
The Agents were paid a cash commission of $737,977.50 and issued 582,789 compensation options (the "Compensation Options"). Each Compensation Option entitles the holder thereof to subscribe for one Unit at the Unit Issue Price until December 11, 2022.
All securities issued pursuant to the Offering are subject to a resale restriction expiring on April 12, 2021.
Gold Terra grants options for 1.29 million shares
Gold Terra Resource Corp. has granted incentive stock options under the company’s stock option plan to its directors, officers, employees and consultants to purchase up to an aggregate of 1,296,250 treasury shares. The options are exercisable at a price of 35 cents per share for a period of five years and are subject to the policies of the TSX Venture Exchange and the company’s stock option plan.
Read MoreAbout Gold Terra Resource’s Yellowknife City gold project
The YCG project encompasses 800 square kilometres of contiguous land immediately north, south and east of the city of Yellowknife in the Northwest Territories. Through a series of acquisitions, Gold Terra controls one of the six major high-grade gold camps in Canada. Being within 10 kilometres of the city of Yellowknife, the YCG is close to vital infrastructure, including all-season roads, air transportation, service providers, hydroelectric power and skilled tradespeople.
The YCG lies on the prolific Yellowknife greenstone belt, covering nearly 70 kilometres of strike length along the main mineralized shear system that host the former-producing high-grade Con and Giant gold mines. The company’s exploration programs have successfully identified significant zones of gold mineralization and multiple targets that remain to be tested which reinforces the company’s objective of re-establishing Yellowknife as one of the premier gold mining districts in Canada.