Homestake Announces Private Placement to Raise Up to $1.6 Million
22 December 2012 - 1:20AM
Marketwired
Homestake Resource Corporation. (TSX VENTURE:HSR)(FRANKFURT:B6IH)
reported today that it plans an equity financing for its 2012
Kinskuch exploration program. The proposed offering shall be on a
non-brokered basis, consisting of flow-through Common Units and
non-flow-through Units. The Company may pay finders' fees in cash
and issue Finder's Warrants each having the same terms and
conditions as the Warrants. The private placements and payment of
finders' fees are subject to regulatory approval. The company has
also reported that the private placement previously announced on
September 21, 2012 will not proceed.
Flow-through Common Units: Issuance of a maximum of 4,750,000
flow-through Units to Canadian resident investors, each
flow-through Unit priced at $0.20 to raise gross proceeds of a
maximum of $950,000. Each Unit is comprised of one flow-through
share and one half share purchase warrant, each whole warrant
entitling the purchase of one common share at a price of $0.25 per
share for 24 months. The proceeds will be utilized for Canadian
exploration expenses, within the meaning of the Income Tax Act
(Canada), related to the exploration during 2012-2013 of the
company's Kinskuch project in British Columbia, Canada with expense
renunciations on December 31, 2012.
Non Flow-through Units: Issuance of a maximum of 4,700,000 Units
priced at $0.15 per Unit to raise gross proceeds of a maximum of
$705,000. Each Unit is comprised of one common share and one share
purchase warrant, each whole warrant entitling the purchase of one
common share at a price of $0.20 per share for 24 months. The
proceeds from the non-flow through private placement will be
utilized for working capital.
Kinskuch Project
The Kinskuch project is a large 623 sq. km property which is
located directly east of Homestake Ridge and extends south
approximately 30km to tidewater at Alice Arm/Kitsault in
Northwestern British Columbia.
Rock and soil geochemical results from the 2012 exploration
program, combined with earlier EM geophysical data continues to
demonstrate extensive mineralization throughout the property.
Specifically, surface soil and rock sampling on the Illiance River
trend has extended Ag-Pb-Zn mineralization south of Homestake's
2011 drilling by an additional 750 metres and expanded the overall
trend to more than 4.5 kilometres of strike length. The Illiance
River trend is the first of several drill-ready target areas
identified on the property located, adjacent to the Company's
Homestake Ridge project and will be the focus of the 2013
exploration program.
About Homestake
Homestake owns a 100 percent interest in the Homestake Ridge
project, which is located in a prolific mineral belt in
northwestern British Columbia. The project is being advanced as a
potential high-grade underground mining operation with a current
NI43-101 compliant Indicated Resource, at a 3.0 g/t AuEq cut-off,
of 191,000 oz gold and 1,350,000 oz silver (215,500 oz AuEq) plus
an Inferred Resource of 530,000 oz gold and 13,470,000 oz silver
(775,900 oz AuEq)(1). Two deposits have been delineated to date,
with a third, South Reef, discovered late in 2011. Multiple
exploration targets remain to be tested on the large 2585 hectare
property. Homestake also holds an option to acquire the
623-square-kilometre Kinskuch project located adjacent to, and to
the southeast of Homestake's Homestake Ridge project. Homestake
holds a 9.76 percent interest in Bravada Gold Corporation (TSX
VENTURE:BVA), which is exploring 21 projects in Nevada.
ON BEHALF OF THE BOARD
Joseph A. Kizis Jr., President
1. The current estimate was prepared by Roscoe Postle Associates Inc.
(RPA). Mineral Resources on the Main Homestake deposit were estimated
previously in 2010 using a block model constrained by 3D wireframes of
the mineralized zones. Mineral Resources on the Homestake Silver deposit
were estimated in 2011 using a block model constrained by pierce points
projected to 2D surfaces. The Main Homestake block model comprised an
array of blocks measuring 5 m x 5 m x 5 m, with grades for Au, Ag, and
Cu interpolated using ID3 weighting. The Homestake Silver block model
comprised an array of blocks measuring 10 m x 10 m. At a 3.0g/t AuEq
cut-off, the models identified an indicated resource of 888,000 tonnes
averaging 6.7g/t Au, 47.2g/t Ag and 0.15% Cu and a cumulative inferred
resource of 4,060,000 tonnes averaging 4.3g/t Au, 158g/t Ag.
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. These statements are based on a
number of assumptions, including, but not limited to, assumptions
regarding general economic conditions, interest rates, commodity
markets, regulatory and governmental approvals for the company's
projects, and the availability of financing for the company's
development projects on reasonable terms. Factors that could cause
actual results to differ materially from those in forward looking
statements include market prices, exploitation and exploration
successes, the timing and receipt of government and regulatory
approvals, and continued availability of capital and financing and
general economic, market or business conditions. Bravo Gold Corp
does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent required by
applicable law.
Neither 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.
Contacts: Homestake Resource Corp. Liana Shahinian
1-888-456-1112 or 604-641-2773liana@mnxltd.com
www.homestakeresource.com