KAM-V Kaminak Commences Exploration at Coffee Gold Project, Yukon and Updates Shareholders on Acquisition Transaction by Goldcorp
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 9, 2016) - Kaminak Gold Corporation ("Kaminak" or the "Company") (TSX VENTURE:KAM) is pleased to announce that the Phase I, 2016 exploration program at the Coffee Gold Project, located 130 km south of the city of Dawson, Yukon, has now commenced. Further to the May 5th, 2016 Kaminak news release, the program is designed to test resource expansion potential proximal to the proposed mine site as well as to further investigate priority gold-in-soil anomalies identified from previous exploration campaigns regionally throughout the landholdings. The Phase I program will include soil sampling, trenching and drilling under a budget of approximately $2.6 million.
Priority targets for Phase I include:
Follow-up expansion drilling at Supremo T3 and Latte, two high-yielding mineralized structures that jointly contribute significant gold ounces in the current mine plan and remain open along strikeSystematic testing of early stage drill discoveries and over 20km of linear trending, gold-in-soil anomalies proximal to the proposed Coffee Gold Project mine planPriority gold-in-soil anomalies tested with trenching and/or drillingA Phase II, approximately $2.4 million exploration program, is planned for later in the summer, contingent upon results of the Phase I program.
The 2016 Phase I program will include the use of a small, track mounted "Grasshopper" drilling rig from Northspan Explorations Ltd. to undertake a shallow, scout drilling campaign consisting of angled, 50 m deep holes along strike from known deposits such as Supremo T3 and Latte where gold-in-soil sampling has proven ineffective, due to permafrost and/or thick layers of colluvium.
The Grasshopper Reverse Circulation (RC) drilling is anticipated to have a number of advantages:
Effective and rapid testing of potential near surface oxide mineralization at a cost basis of less than $150 per metre 'all-in' cost (including consumables, assaying, wages, camp and travel)Lighter platform, requiring less pad clearing and reducing environmental impactFlexibility to drill deeper as requiredRC samples adequate for resource estimationShareholder Update on Kaminak Acquisition by Goldcorp Inc.
As previously announced on May 12th, 2016, Kaminak entered into a definitive agreement with Goldcorp Inc. ("Goldcorp"), pursuant to which Goldcorp has agreed to acquire by way of a plan of arrangement (the "Arrangement"), all of the issued and outstanding shares of Kaminak in an all-share transaction. The total consideration offered for the Kaminak shares is approximately C$520 million.
Under the Arrangement, each common share of Kaminak will be exchanged for 0.10896 common shares of Goldcorp (the "Exchange Ratio"). The Exchange Ratio represents a value of C$2.62 per share based upon the closing price of Goldcorp on the TSX on May 11, 2016 of C$24.08.
On June 3, 2016, Kaminak obtained an interim order of the Supreme Court of British Columbia providing for, among other things, the calling of a special meeting of Kaminak shareholders and option holders to be held on July 12th, 2016 to consider and approve the Arrangement.
A Notice of Meeting and Information Circular relating to the Kaminak special meeting will be mailed to shareholders and optionholders on Tuesday, June 14th. The materials will be filed on SEDAR and on the Kaminak website, www.kaminak.com. The Board of Directors of Kaminak has unanimously recommended that shareholders vote in favour of the Arrangement.
Directors, officers and certain shareholders of Kaminak representing approximately 27.5% of Kaminak's outstanding shares have entered into voting support arrangements with Goldcorp under which they have agreed to vote in favour of the Arrangement.
The Arrangement has been unanimously approved by the Boards of Directors of Kaminak and Goldcorp and will be subject to, among other things, the favourable vote of 66 2/3% of the holders of Kaminak shares and Kaminak options, voting as a single class, at the Kaminak Meeting.
Kaminak's disclosure of a technical or scientific nature in this press release has been reviewed and approved by Tim Smith, MSc., P.Geo, Vice President Exploration for Kaminak Gold Corporation, who serves as a Qualified Person under the definition of NI 43-101.
On behalf of the Board of Directors of Kaminak
Eira Thomas, President and CEO
Kaminak Gold Corporation
For further information about Kaminak Gold Corporation or this news release, please visit our website at www.kaminak.com. |
