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Proven ProbableCategory: Junior Mining
VANCOUVER, British Columbia, Jan. 02, 2019 (GLOBE NEWSWIRE) — Group Ten Metals Inc. (TSX.V: PGE; US OTC: PGEZF; FSE: 5D32) (the “Company” or “Group Ten”) announces completion of the earn-in requirements on the core Black Lake portion of the Black Lake-Drayton gold project, adjoining the Goldlund and Goliath gold projects in the Rainy River district of Northwest Ontario, Canada.
Group Ten has completed the earn-in requirements for the 24 km2 Black Lake claim block within the Black Lake-Drayton project by completing all terms of the agreement first announced November 21, 2012, as amended, such that the Company now owns 100% right, title and interest to the claims subject only to certain production royalties, which include buy-down provisions. Together with the completion of earn-ins announced July 18, 2018, the Company now owns 100% right and title to over 96% of the 114 km2 Black Lake-Drayton project, with the remaining portion subject to one earn-in agreement.
A graphic accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/3897dfee-36b4-47f1-acbf-accae9f86c74
President and CEO Michael Rowley said, “With this most recent milestone, Group Ten is now very close to owning 100% of the Black Lake-Drayton project for a very modest consideration. We continue to receive expressions of interest from potential partners on the project arising from its similarity with and proximity to the Goldlund and Goliath projects held by First Mining Gold and Treasury Metals, respectively, as well as to New Gold’s Rainy River project, which first attracted attention to the district in the 1990s. This asset adds to Group Ten’s commodity base and complements the Company’s core Stillwater West PGE-Ni-Cu project with a large and highly-prospective land position strategically located beside advanced-stage gold projects in a word-class high-grade mining district. We anticipate further announcements with respect to advances at Stillwater West as well as regarding anticipated 2019 field programs at our projects in Montana, Ontario and Yukon.”
About the Black Lake-Drayton Project
As shown in Figure 1, the Black Lake-Drayton project has been consolidated by the Company in five parcels as four option deals plus direct staking, providing Group Ten with 100% earn-in or ownership on more than 114 km2 and over 30 km of under-explored strike length in in the Abrams‐Minnitaki Lake archean greenstone belt, along the northern margin of the Wabigoon sub-province. This highly active gold belt is host to a number of well-known deposits including Goliath (Treasury Metals), Goldlund (First Mining Finance) and Rainy River (New Gold), all of which have seen substantial recent expansions. Since the development of New Gold’s Rainy River deposit, 10 Moz of gold has been discovered in the belt (Figure 1).
The Black Lake-Drayton project includes an archive database with more than 20 historic occurrences, multiple high-grade bulk samples and over 127 drill holes, in addition to geological, geochemical and geophysical data. Although 43% of past drill holes intercepted gold or copper mineralization, they did not adequately test the mineralized zones which are now better understood in the area. Much of the project’s more than 30 km of strike length remains untested, despite the success of neighbouring deposits with similar geology.
On a regional scale, the project is located in the Abrams‐Minnitaki Lake greenstone belt which is south of and parallel to the Birch-Uchi belt, another archean greenstone belt that is home to a number of high-grade gold producers including Goldcorp’s Red Lake mine. Despite its proximity to the Red Lake area and the Birch-Uchi belt, the Abrams-Minnitaki greenstone belt remained under-explored into the 1990s due to persistent ground cover and limited road access. In the past two decades, new roads and improved exploration techniques have led to the delineation of multiple multi-million-ounce high-grade gold reserves and resources on numerous projects in the belt.
About Group Ten Metals Inc.
Group Ten Metals Inc. is a TSX-V-listed Canadian mineral exploration company focused on the development of high-quality platinum, palladium, nickel, copper, cobalt and gold exploration assets in top North American mining jurisdictions. The Company’s core asset is the Stillwater West PGE-Ni-Cu project adjacent to Sibanye-Stillwater’s high-grade PGE mines in Montana, USA. Group Ten also holds the highly prospective Black Lake-Drayton Gold project in the Rainy River district of northwest Ontario, and the Kluane PGE-Ni-Cu project on trend with Nickel Creek Platinum‘s Wellgreen deposit in Canada‘s Yukon Territory.
About the Metallic Group of Companies
The Metallic Group is a collaboration of leading precious and base metals exploration companies, with a portfolio of large, brownfields assets in established mining districts adjacent to some of the industry’s highest-grade platinum and palladium, silver and copper producers. Member companies include Group Ten Metals (PGE.V) in the Stillwater PGM-Ni-Cu district of Montana, Metallic Minerals (MMG.V) in the Yukon’s Keno Hill Silver District, and Granite Creek Copper (GCX-H.V) in the Yukon’s Carmacks copper district. Highly experienced management and technical teams at the Metallic Group have expertise across the spectrum of resource exploration and project development from initial discoveries to advanced development. In addition, the teams have strong project finance and capital markets experience and have demonstrated a commitment to community engagement and environmental best practices.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Michael Rowley, President, CEO & Director
Email: info@grouptenmetals.com Phone: (604) 357 4790
Web: http://grouptenmetals.com Toll Free: (888) 432 0075
Quality Control and Quality Assurance
Ms. Debbie James, P.Geo., is the qualified person for the purposes of National Instrument 43-101, and she has reviewed and approved the technical disclosure contained in this news release.
Forward-Looking Statements
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts including, without limitation, statements regarding potential mineralization, historic production, estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Group Ten believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. For more information on Group Ten and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Michael Rowley, president and CEO of Group Ten Metals sits down with Maurice Jackson of Proven and Probable to discuss his companies exploration for platinum, palladium, nickel, copper and cobalt in the Stillwater area of Montana. Specifically, Mr. Rowley will address the latest press release regarding hybrid zone consisting of 14 target areas, 6 of which Higher-Grade ‘Reef Zones’ and 8 of which are large scale bulk tonnage “Platreef-Style’ Mineralization.
VIDEO
AUDIO
TRANSCRIPT
Original Source: https://www.streetwisereports.com/article/2018/12/27/exploring-for-pges-in-montana.html
Exploring for PGEs in Montana
Contributed Opinion
Source: Maurice Jackson for Streetwise Reports (12/27/18)
Michael Rowley, president and CEO of Group Ten Metals, speaks with Maurice Jackson of Proven and Probable about his company’s recent PGE discoveries in Montana and the similarities to projects in South Africa’s Platreef District.
Maurice Jackson: Joining us today is Michael Rowley, the president and CEO of Group Ten Metals Inc. (PGE:TSX.V; PGEZF:OTC), which is exploring for platinum, palladium, nickel, copper and cobalt in the Stillwater district of Montana.
Mr. Rowley, we have some exciting developments to discuss for current and perspective shareholders, but before we begin, for someone new to the story, who is Group Ten Metals and what is the thesis you’re attempting to prove?
Michael Rowley: Group Ten Metals is a growth stage company, focused on PGM, platinum group metals, plus nickel, copper, also cobalt, the so-called technology battery metals. We have polymetallic deposits as these things occur together; we’re focused primarily at the Stillwater West Project in Montana. We also have assets in the Yukon and a gold project in Ontario.
Maurice Jackson: Group Ten Metals just issued a press release announcing a new discovery hybrid zone and some targets at the Stillwater West. Multi-layered question, sir, can you update us on the Stillwater West, expand on the findings, and tell us what they mean moving forward?
Michael Rowley: Stillwater West is our newest project; we made our first acquisition there in 2017. It’s a remarkable land position and database in a truly world-class district. The Stillwater name, the district is synonymous with the richest palladium, platinum mines in the world, a staggering 90 million ounces in past production and current reserves producing from three mines at over half an ounce per ton, 16 grams per ton.
It’s platinum and palladium rich; palladium, of course, is very significant right now given that palladium is challenging gold as the most valuable precious metal. We are above and below Stillwater in this layered system and because of that we have not only the same potential for palladium and platinum, platinum group metals in general, but we also get to expand our target to these truly polymetallic things including nickel, copper, cobalt, palladium. We recently added to that list, also, rhodium, and we have some significant gold.
This is truly elephant country. It’s the biggest PGM deposit outside of South Africa and Russia and, of course, it was bought by Sibanye our neighbor for $2.2 billion in 2017. So we’re the only other player in the district. It’s a fantastic place to be, we’re very excited.
You brought up the most recent news release, December 17. The Hybrid Zone is one of our targets in the Chrome mountain area and an exciting new discovery. We mention up to 150 meters of mineralized intervals there in this new style of mineralization. What’s exciting is this has never been recognized in camp before and it ties into the Bushveld Complex of South Africa and, despite the known similarities between these districts, Stillwater has never been examined systematically for that potential.
So in a nutshell, we are taking the lessons learned at the Mogalakwena Mine and Ivanhoe’s Platreef project and applying them to the similar geology in Montana Stillwater in a way that nobody’s done before. I guess final point to wrap that up is the team that we’ve attracted includes a number of renowned experts on this type of deposit, but most recently David Broughton of Ivanhoe, so we’ve actually attracted expertise and talent of a world caliber on the project.
Maurice Jackson: Can you further expand on the new 14 target areas?
Michael Rowley: We have as a result of our efforts in 2018, being our first season on the ground, we’ve identified 14 target areas in Stillwater West, six of them fit the high-grade PGE reef type targets that the district is known for, in particular our neighbor Stillwater Sibanye Mines. However, 8 of the 14 targets are these newer Platreef style targets where we see potential for large-scale bulk-mineable disseminated sulfide mineralization of the types seen on the Platreef District of South Africa, and that’s in the basal zones and the lower ultramafic series in Stillwater.
And that’s the greater potential we see there for these hundred million ounce style PGE nickel/copper deposits, also cobalt actually, at Stillwater, and news flow will be ongoing in the coming weeks and months as we reveal the results of our work in 2018, and our plans for 2019.
Maurice Jackson: And what are the target commodities at the Stillwater?
Michael Rowley: It’s a true polymetallic system; the district itself is known for having the highest-grade palladium platinum lines in the world, and that is the three operating Stillwater mines that were bought by Sibanye in 2017, in our part of the district, in the lower part you can also add to that list gold, cobalt, and chrome are significant and we are recently finding indications of potentially significant vanadium and rhodium, you can add to that list as well.
So this suite of commodities, in particular the palladium, in light of what palladium is doing in the markets these days, positions Group Ten as one of very few options in terms of PGE investment opportunity for investors, especially if one included geography in that, being that we are outside of South Africa and Russia, in North America.
Maurice Jackson: Sir, what is the next unanswered question for Group Ten Metals, when should we expect results, and what determines success?
Michael Rowley: Good questions, news flow will be ongoing in the coming weeks, assays are coming in as we speak, we’re entering them into our models and planning our strategy around that, so we’re excited by what we see. I think the most exciting aspect of news is going to be the results of re-logging and modeling the more than 12,000 meters of core that we have in our possession, as we said earlier, no one has brought this land position together with the South African Platreef models, along with this physical core, so bringing these things together, and for the first time looking at this district systematically for the potential for these styles of deposits. It’s very exciting and I think the first quarter of 2019 you’ll see some very interesting news releases and materials along that line.
We will be at the major trade shows, we’ll have core on display at the January shows in Vancouver, and we’ll be at the PDAC in Toronto in March as well, and we look forward to seeing anybody and everybody there.
Maurice Jackson: Sir, we’ve covered the good, what keeps you up at tight that we don’t know about?
Michael Rowley: Well, frankly, our share price isn’t where I’d like it to be and I don’t think it reflects the potential of the company, that is of course seasonal and the juniors (miners) do generally get hit harder this time of year, however, gold has held up very nicely, and other commodities are following it, and the majors have moved up nicely. So I think we can expect a good rebound in 2019 from the mining sector, and from the juniors, and then, of course, there was also our own work, especially Stillwater I think will get some nice life, in addition to the rising tide, that floats all boats.
Maurice Jackson: Finally, what did I forget to ask?
Michael Rowley: Well, it’s not that you forgot to ask, but let’s revisit and touch on something we’ve talked about before, the fact that 75% of the world’s PGM metals come out of South Africa—this has been written up very well recently by the CMP group out of New York—a lot of those mines are facing closures, they’ve been underfunded for years, and this is expected to drive the platinum price substantially into the year 2020.
Palladium, of course, is already up and platinum is expected to follow. It’s worth noting, perhaps, that those are reef mines, they’re deep, they’re hot, they’re expensive, they’re dangerous, the mines of a Platreef, north of the Bushveld, are our current model with Stillwater, and those are highly economic and they keep producing, and that’s what we expect to bring to Stillwater for everyone’s benefit.
Maurice Jackson: Mr. Rowley for someone listening that wants to get more information on Group Ten Metals, what is the website address?
Michael Rowley: Website is grouptenmetals.com.
Maurice Jackson: And as a reminder, Group Ten Metals trades on the TXS.V:PGE, and on the OTCQB:PGEZF; for direct inquiries please contact Chris Ackerman at 604-357-4790 extension 1, or email info@grouptenmetals.com, as reminder Group Ten Metals is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed into today’s interview. Last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Michael Rowley of Group Ten Metals, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
Mr. Rowley, we have some exciting developments to discuss for current and perspective shareholders, but before we begin, for someone new to the story, who is Group Ten Metals and what is the thesis you’re attempting to prove?
Michael Rowley: Group Ten Metals is a growth stage company, focused on PGM, platinum group metals, plus nickel, copper, also cobalt, the so-called technology battery metals. We have polymetallic deposits as these things occur together; we’re focused primarily at the Stillwater West Project in Montana. We also have assets in the Yukon and a gold project in Ontario.
Maurice Jackson: Group Ten Metals just issued a press release announcing a new discovery hybrid zone and some targets at the Stillwater West. Multi-layered question, sir, can you update us on the Stillwater West, expand on the findings, and tell us what they mean moving forward?
Michael Rowley: Stillwater West is our newest project; we made our first acquisition there in 2017. It’s a remarkable land position and database in a truly world-class district. The Stillwater name, the district is synonymous with the richest palladium, platinum mines in the world, a staggering 90 million ounces in past production and current reserves producing from three mines at over half an ounce per ton, 16 grams per ton.
It’s platinum and palladium rich; palladium, of course, is very significant right now given that palladium is challenging gold as the most valuable precious metal. We are above and below Stillwater in this layered system and because of that we have not only the same potential for palladium and platinum, platinum group metals in general, but we also get to expand our target to these truly polymetallic things including nickel, copper, cobalt, palladium. We recently added to that list, also, rhodium, and we have some significant gold.
This is truly elephant country. It’s the biggest PGM deposit outside of South Africa and Russia and, of course, it was bought by Sibanye our neighbor for $2.2 billion in 2017. So we’re the only other player in the district. It’s a fantastic place to be, we’re very excited.
You brought up the most recent news release, December 17. The Hybrid Zone is one of our targets in the Chrome mountain area and an exciting new discovery. We mention up to 150 meters of mineralized intervals there in this new style of mineralization. What’s exciting is this has never been recognized in camp before and it ties into the Bushveld Complex of South Africa and, despite the known similarities between these districts, Stillwater has never been examined systematically for that potential.
So in a nutshell, we are taking the lessons learned at the Mogalakwena Mine and Ivanhoe’s Platreef project and applying them to the similar geology in Montana Stillwater in a way that nobody’s done before. I guess final point to wrap that up is the team that we’ve attracted includes a number of renowned experts on this type of deposit, but most recently David Broughton of Ivanhoe, so we’ve actually attracted expertise and talent of a world caliber on the project.
Maurice Jackson: Can you further expand on the new 14 target areas?
Michael Rowley: We have as a result of our efforts in 2018, being our first season on the ground, we’ve identified 14 target areas in Stillwater West, six of them fit the high-grade PGE reef type targets that the district is known for, in particular our neighbor Stillwater Sibanye Mines. However, 8 of the 14 targets are these newer Platreef style targets where we see potential for large-scale bulk-mineable disseminated sulfide mineralization of the types seen on the Platreef District of South Africa, and that’s in the basal zones and the lower ultramafic series in Stillwater.
And that’s the greater potential we see there for these hundred million ounce style PGE nickel/copper deposits, also cobalt actually, at Stillwater, and news flow will be ongoing in the coming weeks and months as we reveal the results of our work in 2018, and our plans for 2019.
Maurice Jackson: And what are the target commodities at the Stillwater?
Michael Rowley: It’s a true polymetallic system; the district itself is known for having the highest-grade palladium platinum lines in the world, and that is the three operating Stillwater mines that were bought by Sibanye in 2017, in our part of the district, in the lower part you can also add to that list gold, cobalt, and chrome are significant and we are recently finding indications of potentially significant vanadium and rhodium, you can add to that list as well.
So this suite of commodities, in particular the palladium, in light of what palladium is doing in the markets these days, positions Group Ten as one of very few options in terms of PGE investment opportunity for investors, especially if one included geography in that, being that we are outside of South Africa and Russia, in North America.
Maurice Jackson: Sir, what is the next unanswered question for Group Ten Metals, when should we expect results, and what determines success?
Michael Rowley: Good questions, news flow will be ongoing in the coming weeks, assays are coming in as we speak, we’re entering them into our models and planning our strategy around that, so we’re excited by what we see. I think the most exciting aspect of news is going to be the results of re-logging and modeling the more than 12,000 meters of core that we have in our possession, as we said earlier, no one has brought this land position together with the South African Platreef models, along with this physical core, so bringing these things together, and for the first time looking at this district systematically for the potential for these styles of deposits. It’s very exciting and I think the first quarter of 2019 you’ll see some very interesting news releases and materials along that line.
We will be at the major trade shows, we’ll have core on display at the January shows in Vancouver, and we’ll be at the PDAC in Toronto in March as well, and we look forward to seeing anybody and everybody there.
Maurice Jackson: Sir, we’ve covered the good, what keeps you up at tight that we don’t know about?
Michael Rowley: Well, frankly, our share price isn’t where I’d like it to be and I don’t think it reflects the potential of the company, that is of course seasonal and the juniors (miners) do generally get hit harder this time of year, however, gold has held up very nicely, and other commodities are following it, and the majors have moved up nicely. So I think we can expect a good rebound in 2019 from the mining sector, and from the juniors, and then, of course, there was also our own work, especially Stillwater I think will get some nice life, in addition to the rising tide, that floats all boats.
Maurice Jackson: Finally, what did I forget to ask?
Michael Rowley: Well, it’s not that you forgot to ask, but let’s revisit and touch on something we’ve talked about before, the fact that 75% of the world’s PGM metals come out of South Africa—this has been written up very well recently by the CMP group out of New York—a lot of those mines are facing closures, they’ve been underfunded for years, and this is expected to drive the platinum price substantially into the year 2020.
Palladium, of course, is already up and platinum is expected to follow. It’s worth noting, perhaps, that those are reef mines, they’re deep, they’re hot, they’re expensive, they’re dangerous, the mines of a Platreef, north of the Bushveld, are our current model with Stillwater, and those are highly economic and they keep producing, and that’s what we expect to bring to Stillwater for everyone’s benefit.
Maurice Jackson: Mr. Rowley for someone listening that wants to get more information on Group Ten Metals, what is the website address?
Michael Rowley: Website is grouptenmetals.com.
Maurice Jackson: And as a reminder, Group Ten Metals trades on the TXS.V:PGE, and on the OTCQB:PGEZF; for direct inquiries please contact Chris Ackerman at 604-357-4790 extension 1, or email info@grouptenmetals.com, as reminder Group Ten Metals is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed into today’s interview. Last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at contact@provenandprobable.com.
Michael Rowley of Group Ten Metals, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
1) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Group Ten Metals. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Group Ten Metals is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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Bob Moriarty
Archives
Dec 24, 2018
On January 26th of this year I wrote that sentiment indicators derived from the DSI put out by Jake Bernstein indicated that an even dozen commodities/markets were about to turn. All twelve did. There was not a bit of magic or voodoo involved. I just used information that anyone could have read and come to the same conclusion. That’s why I wrote Nobody Knows Anything. There are no experts or gurus. If you learn to think for yourself and you have access to the right data, you can move the odds in your favor.
This time I am going to throw in some voodoo. As Tom McClellan has pointed out a number of times in the past, full moons tend to mark either turning points or where a commodity accelerates faster in the direction it has been moving. Let’s see if we have turns or acceleration higher and lower for these commodities. Saturday the 22nd of December showed a full moon and if it really does move markets we should see it now.
As measured by the DSI, T-Bond futures hit a high of 94 on the 19th of December. It’s been higher at other turns but with ten other commodities showing extremes of emotion that easily could have said a turn lower is at hand for T-Bonds. On the 21st of December both the S&P Index and the Nasdaq Index futures showed a value of 5. Again there have been turns in the past that went lower but both indexes are showing signs of fatigue and I suspect may be turning higher and want to join the party. The VIX hit 96 on Friday. You have to go back almost three years to find a higher reading so I believe the VIX is going to run lower from here.
The theory behind the DSI says nothing about the commodity involved, it’s not as if gold hits an extreme so silver has to. Commodities trade higher and lower and are rarely synchronized but the Canadian dollar futures hit a low of 9 and that may well mark a low. In the energy space Crude Light hit a low of 6 on the 18th of December while Heating Oil and Gasoline futures showed values of 7. Crude has been as low as 4 in the middle of November but for sure that wasn’t the low. Maybe the energy commodities are tired of crashing and are about to turn higher. Copper hit a low of 7 on the 18th as well and we will have to see if that marks a low or if it will accelerate lower.
In the soft commodities, cotton hit a value of 7 and if everything else with a low value wants to make a turn, I think cotton will as well. And since the CRB Index itself is a measure of commodities it showing a value of 8 on the 18th reflects a turn for a lot of commodities to move higher.
The DSI is not a magic bullet but it is one of the cheapest and most valuable tools an investor can use. I made my first trade in financial markets in early 1970 and in between then and now I have never seen anyone forecast a dozen commodities turning with accuracy. I managed it in January of this year with nothing but a chart of the DSI; let’s see how many of eleven I can get right this time.
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Bob Moriarty
President: 321gold
Archives
321gold Ltd
TORONTO, Dec. 21, 2018 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE: GWA) announced today that it has issued Units and FT Units for aggregate gross proceeds of $993,800.00 pursuant to the initial closing of its previously announced private placement (the “Private Placement”) (see news releases dated November 27, December 10, and December 20, 2018).
Pursuant to this initial closing of the Private Placement, the Company issued: (i) 7,857,142 units (“Units”), each Unit comprises one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”); and (ii) 11,676,000 “flow-through” units (“FT Units”), each FT Unit comprises one common share and one-half of one Warrant. Each Unit and FT Unit was issued at a purchase price of $0.05 and each Warrant is exercisable to acquire one additional common share of the Company at a price of $0.07 for a period of 24 months following the closing date of the Private Placement.
It is anticipated that one or more additional closings of the Private Placement will be completed in early 2019.
Subscriptions by insiders of the Corporation accounted for approximately $625,000.00 of the gross proceeds of the Private Placement. Participation by insiders under the Private Placement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 – “Protection of Minority Security Holders in Special Transactions” (“MI 61-101”) by virtue of the exemptions contained in Sections 5.5(b) and 5.7(1)(b) of MI 61-101.
All of the securities issuable in connection with the Private Placement are subject to a hold period expiring four months and one day after date of issuance.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
Early Warning Disclosure
In connection with the Private Placement, C. Fraser Elliott, a director of the Company, subscribed for and acquired a combination of 12,000,000 Units and FT Units. Following completion of the initial tranche of the Private Placement, Mr. Elliott now has control and direction over an aggregate of 38,790,478 common shares, incentive stock options exercisable to acquire 900,000 common shares and warrants exercisable to acquire 13,986,032 common shares. The common shares controlled by Mr. Elliott represent approximately 9.99% of the outstanding common shares of the Company. Assuming the exercise of only the stock options and warrants controlled by Mr. Elliott, when combined with his existing common share ownership, he would hold control and direction over an aggregate of 53,676,510 common shares representing approximately 13.32% of the then outstanding common shares of the Company.
All securities of the Company controlled by Mr. Elliott are held for investment purposes. In the future, Mr. Elliott (directly or indirectly), may acquire and/or dispose of securities of the Company through the market, privately or otherwise, as circumstances or market conditions may warrant.
A copy of the early warning report filed by Mr. Elliott in connection with completion of the Private Placement is available under the Company’s profile on SEDAR (www.sedar.com).
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Company’s North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
Forward-Looking Statements
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
| For further information please contact: | |||||||
| Greg Romain | Greg Taylor | ||||||
| President & CEO | Investor Relations | ||||||
| Tel: (416) 363-1210 | Tel: 416 605-5120 | ||||||
| Email: info@gowestgold.com | Email: gregt@gowestgold.com | ||||||
