Dolly Varden grants options to buy 2.67 million shares
Dolly Varden Silver Corp. has granted an aggregate of 2,675,000 incentive stock options to directors, officers and key consultants to purchase up to 2,675,000 common shares in the capital of Dolly Varden. The incentive stock options have an exercise price of 71 cents per share.
Generation Mining files NI 43-101 report for Marathon
Generation Mining Ltd. has filed a technical report prepared in accordance with National Instrument 43-101 (Standards for Disclosure for Mineral Projects) on the feasibility study prepared for the company on the Marathon palladium and copper project. The technical report supports the disclosure set out in the company’s March 3, 2021, news release announcing the results of the feasibility study for the Marathon palladium-copper deposit located near the town of Marathon in Northwestern Ontario.
The technical report may be found under the company’s profile on SEDAR and is available on the company’s website, along with a presentation that summarizes the results of the technical report.
Treasury Metals appoints Baranowsky CFO, Gibson retires
Treasury Metals Inc. has appointed Orin Baranowsky to the position of chief financial officer effective April 1, 2021. Mr. Baranowsky replaces Dennis Gibson who will be retiring at the end of March, 2021, and will provide consulting services to the company to help ensure a seamless transition.
Mr. Baranowsky brings more than 20 years of finance and capital markets experience to this role. Most recently, he was chief financial officer for Blue Thunder Mining Inc., a Canadian-focused minerals exploration company. Previously, he served as chief financial officer of Stornoway Diamond Corp., where he led the finance, accounting, corporate development, investor relations and IT functions, and was instrumental in helping raise more than $1-billion for the construction of the Renard diamond mine in Quebec. In addition, he previously served as vice-president of investor relations for CB Gold Inc., and spent more than 10 years as an equities research analyst for BMO Capital Markets. Mr. Baranowsky holds an honours bachelor of business administration degree from Wilfrid Laurier University, is a member of the Chartered Professional Accountants of Ontario, and is a CFA charterholder.
“We are very pleased and excited to have Orin join the team at Treasury at this time as we continue to advance the Goliath gold complex and move into the next phase of our growth,” said Jeremy Wyeth, president and chief executive officer. “His experience in financing and developing a mine is precisely the expertise the company needs as we advance trade-off and engineering studies and work towards a prefeasibility study. On behalf of the board of directors and the entire team I would like to welcome Orin to Treasury Metals.”
The board of directors would like to thank Mr. Gibson for his contribution to the company over the last 10 years and wishes him well in his future endeavours.
“I would like to thank Dennis for the commitment, leadership and support he has provided to Treasury. He played a fundamental role in numerous financings and was instrumental in helping the company get to where it is today,” said Mr. Wyeth.
The company has approved the granting of 300,000 stock options to Mr. Baranowsky. In accordance with the company’s employee stock option plan, the options will have a three-year term and will allow the holder to purchase common shares of the company at a price of 95 cents.
Orca Gold increases private placement to $10.8-million
In connection with Orca Gold Inc.’s previously announced non-brokered private placement to raise $10-million by the issuance of up to 18,181,819 common shares at a price of 55 cents per share (see press release dated March 17, 2021), the private placement has been increased to 19.65 million common shares for aggregate gross proceeds of $10,807,500.00. All other terms remain the same.
Frontier Lithium arranges $2-million private placement
Frontier Lithium Inc. has arranged a non-brokered private placement for gross proceeds of $2-million for a total of 1,538,462 flow-through units at a price of $1.30 per flow-through unit.
Each FT Unit will consist of one common share in the capital stock of Frontier (“Common Share”) issued on a flow-through basis and one-half Common Share purchase warrant (“FT Warrant”). Each full FT Warrant shall entitle the holder thereof to purchase one additional Common Share of Frontier Lithium at an exercise price of $1.50 for a 24-month period following the closing date of the Offering. All warrants issued at this financing are subject to an accelerated expiry of warrants at the sole discretion by the Company within set terms.
Frontier Lithium reserves the opportunity to grant to eligible persons a finder’s fee of a maximum 6% of the gross proceeds of the Offering and finder warrants of a maximum of 6% of the total number of Units sold under the Offering. Each finder warrant will be exercisable at an exercise price of $1.50 CDN into one common share for a period of 24 months from the date of issuance.
All of the Shares and Warrants issued pursuant to the private placement are subject to a minimum 4-month and one day statutory hold period. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (“TSX-V”) and applicable securities regulatory authorities. Proceeds from the financing will be used to advance exploration and the prefeasibility study of Frontier’s 100% owned PAK lithium project located in northwestern Ontario.
Galway closes $15-million private placement
Galway Metals Inc. has closed the previously announced bought deal private placement offering for aggregate gross proceeds of $15-million consisting of 5,999,900 common shares of the company that qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) at a price of $1.45 per national flow-through share, 1,087,000 common shares of the company that qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and Section 359.1 of the Taxation Act (Quebec)) at a price of $1.84 per Quebec flow-through share and 4,095,400 common shares of the company at a price of $1.05 per hard dollar share.
The offering was carried out by a syndicate of underwriters led by Paradigm Capital Inc., and including Laurentian Bank Securities Inc., Desjardins Securities Inc. and BMO Capital Markets.
The offering is subject to regulatory approval, and all securities issued and issuable pursuant to the offering will have a hold period of four months and one day. The company will use the gross proceeds from the sale of the national flow-through shares to incur eligible Canadian exploration expenses that qualify as flow-through mining expenditures as both terms are defined in the Income Tax Act (Canada) related to the company’s projects in Canada on or before Dec. 31, 2022. The company will use the gross proceeds from the sale of the Quebec flow-through shares to incur qualifying expenditures related to the company’s projects in Quebec on or before Dec. 31, 2022. The qualifying expenditures will be renounced in favour of the subscribers of the flow-through shares effective Dec. 31, 2021. The proceeds from the sale of the hard dollar shares will be used for exploration, updating technical studies and for general corporate purposes.
As consideration for the services provided by the underwriters in connection with the offering, the underwriters received a cash commission equal to $900,006.30 and the underwriters received 670,938 compensation options. Each compensation option is exercisable to acquire one common share of the company, issued on a non-flow-through basis at a price of $1.05 per compensation option share, for a period of 24 months following the closing of the offering.
Aquila Resources cancels offering, withdraws prospectus
In light of current market conditions, Aquila Resources Inc. has determined not to proceed with its previously announced marketed equity offering at this time and is withdrawing its preliminary short form prospectus filed on March 24, 2021. The company also does not intend to move forward with the contemplated concurrent private placement.
Aquila will work with its advisers to consider and evaluate various strategic alternatives to maximize shareholder value, including looking to realize value from its Wisconsin properties. The company will also continue to work with Osisko Technical Services, which is leading the preparation of an optimized feasibility study for the Back Forty project.
Cantex drills 7.3m 29.86 per cent Pb-Zi, 104g/t Ag at N. Rackla
Cantex Mine Development Corp. has released an update on the work program at its 14,077-hectare North Rackla claim block where drill results continue to define a lead-zinc-silver mineralized system with Broken Hill type (BHT) affinities.
Hole YKDD20-177 was drilled vertically into the GZ zone located 550 metres southeast of the high-grade Extension sector and intersected 7.3 metres of 24.45 per cent zinc, 5.41 per cent lead and 104 grams per tonne silver between 46.1 and 53.4 metres depth. The hole was collared 64 metres southwest of the previously reported hole YKDD20-174 (see news release from Feb. 1, 2021) which contained 4.05 m of 32.14 per cent zinc, 7.25 per cent lead and 130 g/t silver within 8.95 m of 22.77 per cent lead-zinc and 76 g/t silver. As the whole GZ zone is covered in overburden, structural geologist Chris Buchanan is focusing on acquiring more data to define the trend of these extremely rich massive sulphides. Additional drilling and/or excavation of overburden are needed to establish how the GZ zone massive sulphides relate to the high-grade Main zone massive sulphides.
By way of comparison, the Mount Isa mine is one of the largest zinc mines in the world and hosts proven and probable reserves containing 7.4 per cent zinc, 3.6 per cent lead and 66 g/t silver.
Drilling from pad MZ35 at the Central sector intersected a high-grade intersection of 4.7 metres of 21.05 per cent lead-zinc with 66 g/t silver, including 2.8 metres of 26.33 per cent zinc, 7.22 per cent lead and 99 g/t silver from 594.9 metres depth in the minus-73-degree inclined hole YKDD20-170. This new mineralization occurs in dolomite approximately 100 m outward from the dolomite-argillite contact. Thin (one-metre-to-1.3-metre-wide) intercepts of massive sulphide were also found in dolomite outward from the contact in holes YKDD20-166 and YKDD20-168 also drilled from pad MZ35 at minus-55-degree and minus-65-degree inclinations respectively. The massive sulphides are increasing in thickness and grade with depth (33.55 per cent lead-zinc with 99 g/t silver) in these holes (YKDD20-170). An additional deep hole drilled at minus-80-degree inclination is needed to determine whether this newly discovered mineralization continues to increase in thickness and grade with depth.
A minus-45-degree-inclined hole (YKDD20-178) drilled from pad MZ51 intersected 5.23 per cent lead, 4.73 per cent zinc and 31 g/t silver at the dolomite-argillite contact located 250 m northeast of the Discovery sector. Unfortunately, this intersection (that was spotted by Mr. Buchanan) has been gouged and faulted subsequent to lead-zinc-silver mineralization deposition. Thus, mineralization may have been displaced at the drill intercept by the faulting. The end of the drill program prevented the completion of minus-55- and minus-65-degree-inclined holes. These will be drilled this season.
Drill results from the final holes of the 2020 season are presented in the attached table.
Summary of structural analysis
The company’s structural geologist, Mr. Buchanan, has completed a detailed structural analysis, including plan maps and cross sections. He has explained that a major east-west-trending strike-slip fault displaced the Extension sector from the Central sector by a distance of about 200 m, explaining why drill intersections were unsuccessful in this 200-metre gap. He has also identified northeast-trending faults that could displace the massive sulphides by up to 30 m. The mineralization along the argillite-dolomite contact is very prolific and the Cantex geologists all agree that favourable intersections are likely along the northeast trending contact mapped by Mr. Buchanan from the Central sector all the way to pad MZ51 and beyond. Drilling of this area is planned to commence in the spring.
The drill holes reported in this press release were drilled using HQ (63.5-millimetre) diamond drill bits. The core was logged, marked up for sampling and then divided into equal halves using a diamond saw on site. One-half of the core was left in the original core box. The other half was sampled and placed into sealed bags which were in turn placed into larger bags closed with security seals prior to being transported to CF Mineral Research Ltd. in Kelowna, B.C.
At CF Minerals the drill core was dried prior to crushing to minus-10 mesh. The samples, which averaged over three kilograms, were then mixed prior to splitting off 800 grams. The 800-gram splits were pulverized to minus-200 mesh and a 250-gram split was sent for assay. Quality control procedures included running a barren sand sample through both the crusher and pulverizer between each sample to ensure no intersample contamination occurred. Silica blanks were inserted along with certified reference samples. These quality control samples were each inserted approximately every 20 samples.
ALS Chemex in Vancouver assayed the samples using a four-acid digestion with an ICP-MS finish. The 48-element ME-MS61 technique was used to provide a geochemical signature of the mineralization. Where lead, zinc or copper values exceeded 1 per cent the Pb-OG62, Zn-OG62 or Cu-OG62 techniques were used. These have upper limits of 20 per cent lead, 30 per cent zinc and 50 per cent copper, respectively. Samples with lead and zinc values over these limits were then analyzed by titration methods Pb-VOL70 and Zn-VOL50. Where silver samples exceeded 100 g/t the Ag-OG62 technique was used which has an upper limit of 1,500 g/t. The overlimit analyses contributed to delays in receiving final assay results.
The gold and base metal results for 312 rock samples and 2,800 soil-talus samples collected during 2020 are forthcoming and will be released when received.
Cantex looks forward to the coming drill season where building the known tonnage of the Main zone will be the main focus. Further drill testing of the GZ zone and additional targets within the North Rackla claim block is also planned.
The technical information and results reported here have been reviewed by Chad Ulansky, PGeol, a qualified person under National Instrument 43-101, who is responsible for the technical content of this release.