- Issued 5,691,539 Units, each Unit consisting of 1 common share and 1 common share purchase warrant, each warrant being exercisable at $0.08 for 24 months
- Proceeds from the financing will be used to fund the phase 3 drilling at the Tabasquena project near Ojocaliente, Mexico
- A key focus of the phase 3 drilling will be to drill deeper and target the boiling zone of the epithermal vein system
Vancouver, British Columbia–(Newsfile Corp. – February 28, 2019) –
Advance Gold Corp. (TSXV: AAX) (“Advance Gold” or “the Company”) is
pleased to announce that it has closed its previously announced private
placement financing (see February 5, 2019 and February 22, 2019 news
releases). The Company has issued 5,691,539 Units, each Unit consisting
of 1 common share and 1 common share purchase warrant, each warrant
being exercisable at $0.08 for 24 months, for gross proceeds of
$369,950. Proceeds from the financing will be used to fund the phase 3
drilling at the Tabasquena project near Ojocaliente, Mexico and for
general corporate purposes.
All securities issued pursuant to the
financing will be subject to a 4 month hold. Finders’ fees have been
paid to certain finders in accordance with TSX Venture Exchange
policies.
The private placement was effected with 1 insider of
the Company subscribing for a total of $75,000, that portion of the
Financing a “related party transaction” as such term is defined under
Multilateral Instrument 61-101 – Protection of Minority Security Holders
in Special Transactions (“MI 61-101”). The Company is relying on
exemptions from the formal valuation and minority approval requirements
set out in MI 61-101. The Company is exempt from the formal valuation
requirement of MI 61-101 under sections 5.5(a) and (b) of MI 61-101 in
respect of the transaction as the fair market value of the transaction,
insofar as it involves the interested party, is not more than 25% of the
Company’s market capitalization. Additionally, the Company is exempt
from minority shareholder approval under sections 5.7(1)(a) and (b) of
MI 61-101 as, in addition to the foregoing, (i) neither the fair market
value of the Units nor the consideration received in respect thereof
from interested party exceeds $2,500,000, (ii) the Company has one or
more independent directors who are not employees of the Company, and
(iii) all of the independent directors have approved the transaction.
Material change reports were not filed 21 days prior to the closing of
the financing because insider participation had not been established at
the time the financing was announced.
Upcoming Drilling
In
the first two phases of drilling, Advance discovered a cluster of
epithermal veins, all but a few of them blind, which suggests this
drilling intersected the top of the epithermal vein system. The results
from the 2 phases of drilling returned significant gold mineralization
(see Press Releases November 1, 2018 and November 6, 2018).
A
key focus of the phase 3 drilling will be to drill deeper and target
the boiling zone of the epithermal vein system. The cluster of veins dip
toward a fault which is considered a key structural feature. A proposed
hole will start from the east side of the fault, drill west, to then go
through the cluster of veins to catch them at the boiling zone.
The
other key focus will be to drill a few shallow holes near a 12 metre
intersection of the Tabasquena vein in the oxides. This vein in the
oxides is much wider than the historical 2-4 metre mining width utilized
by former operator Penoles, which was across 2-4 metres. This
intersection was a 125 metre step out to the north of the old mine
workings and is approximately 75 metres along strike from the 100 metre
deep shaft and headframe. Advance has mining equipment and the
Tabasquena project is fully permitted for mining.
Allan Barry Laboucan, President and CEO of Advance Gold Corp. commented: “Our
team is very excited to get started on our phase 3 drilling program at
the Tabasquena project. We are in the final stages of planning our two
pronged approach to drilling, and will provide more details as we begin
drilling shortly.
“Past historical mining by Penoles in
the oxides had reported high-grade silver, we have stepped out from
their underground workings and found a much wider intersection of the
Tabasquena vein of 12 metres in the oxides. The shallow holes will help
us understand the near surface potential. There are plenty of streaming
and royalty companies looking for near term production projects to
invest in, yet a small group to choose from. Our timing to test the near
surface potential is very good.
“Our deep hole will test
the depth potential of the cluster of epithermal veins we have hit in
the first 2 phases of drilling. Zonation of grade along the vertical and
horizontal is common in epithermal vein systems, our deeper hole will
help us understand down to the boiling zone of the system.”
Julio
Pinto Linares is a QP, Doctor in Geological Sciences with specialty in
Economic Geology and Qualified Professional No. 01365 by MMSA., for
Advance Gold and is the qualified person as defined by National
Instrument 43-101 responsible for the accuracy of technical information
contained in this news release.
About Advance Gold Corp. (TSXV: AAX)
Advance
Gold is a TSX-V listed junior exploration company focused on acquiring
and exploring mineral properties containing precious metals. The Company
acquired a 100% interest in the Tabasquena Silver Mine in Zacatecas,
Mexico in 2017, and the Venaditas project, also in Zacatecas state, in
April, 2018.
The Tabasquena project is located near the Milagros
silver mine near the city of Ojocaliente, Mexico. Benefits at Tabasquena
include road access to the claims, power to the claims, a 100-metre
underground shaft and underground workings, plus it is a fully permitted mine.
Venaditas
is well located adjacent to Teck’s San Nicholas mine, a VMS deposit,
and it is approximately 11km to the east of the Tabasquena project,
along a paved road.
In addition, Advance Gold holds a 14.53%
interest on strategic claims in the Liranda Corridor in Kenya, East
Africa. The remaining 85.47% of the Kakamega project is held by Acacia
Mining (63% owned by Barrick Gold).
For further information, please contact:
Allan Barry Laboucan,
President and CEO
Phone: (604) 505-4753
Email: [email protected]
